Economic Plan for Essex Essex County Council 22nd April 2014 1 Foreword Economic growth is our top priority – our county’s future depends upon securing sustainable growth for our businesses and communities. This will not just help our businesses and communities to prosper; it will support the public finances by generating a return on our investments and allowing us to continue to support those who are entitled to expect our help. Economic growth is also a major priority for HM Government. Through our membership of the South East Local Enterprise Partnership (SELEP), local businesses and public sector partners in Essex have the opportunity to negotiate a ‘Growth Deal’ with Ministers. In return for resources and flexibilities to support the delivery of key growth programmes, we will invest our own resources to deliver a step change in our economic performance. This document – our Economic Plan for Essex (EPfE) – shows how, with support we are seeking from HM Government, we would accelerate growth over the next seven years. And we are not starting from scratch – we have a strong record of achievement upon which to build. We have supported economic development across the county; examples include a £100m property development in Colchester town centre; Creative Business and Enterprise Centres in Colchester and Braintree; a £25m programme to roll out superfast broadband across the county; support for one of the world’s largest health innovation centres at the Anglia Ruskin Medtech Campus; and a transformational skills programme which has helped reduce the number of our young people not in employment, education or training by around 30% since 2010. But we can and must do more; business as usual is not enough. Acting now to secure a ‘Growth Deal’ with HM Government, at a time when economic conditions are improving will give us the chance to enable up to 117,745 new jobs and 81,310 new homes by 2021. These results will be supported by significant improvements in our transport infrastructure and public realm; by measures to support entrepreneurs to start and stay in business; and by an enhanced package of support to help our residents gain the skills they need to secure and stay in work. This plan, therefore, is our commitment to do more, with support from HM Government, to stimulate economic growth in three important ways: we will invest more on our own account, and encourage private investment in worthwhile projects that will deliver economic growth. Our ambition is to deliver £1bn of investment between now and 2021; with this investment, and by working together, public and private partners will help to deliver a major series of enabling projects described in the plan that we have identified as key to our future economic prosperity; and 2 we will introduce a new and more proactive approach to economic development. We will not simply deliver these projects and hope for the expected investment to follow, but will actively market our investment opportunities, encouraging new businesses and investors and seeking out development partners where appropriate. We believe these three changes will “turn the curve” – taking us from where we are now to a step increase in our economic performance through our ability, working together, to create the conditions to foster and enable economic growth. This EPfE is based on our submission to HM Government, as part of SELEP, for funding from the Single Local Growth Fund from 2015-16 onwards. It is intended to supplement the information submitted through SELEP and provide a clear focus on our ambitions for Essex and those of our partners in SELEP. We expect to conclude a Growth Deal with HM Government, following a period of negotiation, sometime in July. We will publish a further version of this plan reflecting the outcome of ongoing discussions with our partners – districts, boroughs and other authorities, including the two unitary authorities – and of the deal we have struck with HM Government. Cllr Kevin Bentley Deputy Leader and Cabinet Member for Economic Growth and Infrastructure Essex County Council 3 Contents This document sets out an Economic Plan for Essex. It articulates the challenges facing the Essex economy and the issues that need to be addressed to secure sustainable growth. It sets out the interventions and investments that partners propose to make with the necessary support from HM Government, supplemented with local resources, to help secure growth and a programme of co-investment that will support delivery. The document also describes the role that HM Government can play in enabling local growth. It seeks a commitment from HM Government to work in partnership with businesses, local authorities, colleges, universities and other partners in Essex to invest in growth enabling infrastructure, and to shape national policy and practice to realise our shared growth ambitions and the full potential of the Essex economy. The document is organised as follows: Page 6 Our Ambition This section summarises the economic outcomes we want to see achieved within the Essex economy. Page 7-12 Our Plan This section provides background to our Plan, and an overview of the challenges and opportunities facing the local economy. Page 13-21 Our Proposition This section sets out the issues that partners must work together to address; the interventions we will make to enable growth; the investment package we propose to marshal in support of these interventions, and the role we expect HM Government to play. Page 22-28 Skills Page 29-58 Growth locations Page 59-65 Productivity Page 66-69 Our Commitment to Delivery These sections provide detail of partners’ proposals to improve skills across the Essex workforce; deliver growth-enabling infrastructure in Essex’s key growth corridors (Growth locations); and enhance support for enterprise and innovation and key growth sectors within Essex (Productivity). This section outlines the local partnerships and governance arrangements that will ensure effective local delivery, accountability in local decision-making and assurance in the stewardship of public investment. 4 Executive Summary The Economic Plan for Essex articulates Essex partners’ collective plans for unlocking economic growth. It demonstrates a compelling case for investment in the Essex economy that will enable: over 117,745 new jobs; and over 81,310 new homes by 2021. Based on a deep understanding of the challenges and opportunities facing the Essex economy, we have set out a plan that will: improve skills across the Essex workforce by closing the gap between the needs of employers and the choices learners make. Essex’s Employability and Skills Board will lead this work, directing local public-private and EU funding to shape local skills programmes to address skills gaps and increase employment; focuses a £1bn pipeline of infrastructure investment on our four strategic growth corridors (the A120, A12, M11 and A13/A127). This pipeline of enabling investments will deliver the transport, property and skills infrastructure that will secure growth in jobs and homes to 2021 and beyond; and enhance productivity within the Essex economy, focusing support for business on five growth sectors. It also proposes the integration of business support provision under a single brand in a new partnership between local authorities and Essex’s universities. Our plans are premised on securing HM Government investment of £363m through the single local growth fund. This document will provide a basis for a process of negotiation with HM Government on levels of local investment throughout Summer 2014. If this investment is not forthcoming, this will have a substantial impact on local partners’ ability to deliver the commitments set out within this document. Without resources from HM Government, local partners will be unable to deliver the programme of investment that will enable job and housing growth on this scale. Our Economic Plan also sets out the commitments that we seek from HM Government in working with local partners to secure growth outcomes. This includes, but is not limited to: committing to deliver specific national rail and road investment by agreed dates; provide seed fund investment, through the Local Growth fund, for a new property investment fund; and enabling the Essex Employment and Skills, in partnership with the sector guilds, Essex’s share of SELEP’s £4.3million per year adult skills budget, in order to address skills shortages in priority sectors. Our Ambition 5 the delivery of infrastructure improvements that support business growth – we want businesses to have access to the right premises, and for Essex’s transport links to enable, rather than inhibit economic growth. This section summarises the economic outcome we want to see achieved within the Essex economy. 1. 2. We want to secure sustainable economic growth for businesses and communities across Essex. Everything in this plan supports this ambition. 3. We will determine our success based on measures of: quantify baseline our position at 2014; job growth across Essex – we aim to secure 117,745 new jobs through the delivery of this plan; project anticipated trends based on demographic changes and the impact of our plans and proposals; and increased levels of output across the economy – we want to see output increase in growth corridors and in key sectors; improvements in productivity – we want to see sustained increases in the earnings of those working in Essex; increased house building – we aim to see 81,310 new homes built over the life of this plan; To help us manage progress towards this goal, we have commissioned specialised economic analysis to: provide regular updates on changes in the local economy. 4. This intelligence will to allow us to make evidence-based judgements on where our plans are progressing well, where progress is being made, and where further action is required. improvements in broadband – we want to maximise the number of households and businesses that have access to superfast broadband; the skills of the Essex workforce – we want more Essex businesses to be able to recruit suitable people; the economic activity of our young people – we want Essex to be a NEET free county (people not in education, employment and training); and Our Plan 6 we will introduce a new and more proactive approach to economic development. We will not simply deliver these projects and hope for the expected investment to follow, but will actively market our investment opportunities, encouraging new businesses and investors and seeking out development partners where appropriate. We believe these three changes will “turn the curve” – taking us from where we are now to a step increase in our economic performance through our ability, working together, to create the conditions to foster and enable economic growth. This EPfE is based on our submission to HM Government, as part of SELEP, for funding from the Single Local Growth Fund from 2015-16 onwards. It is intended to supplement the information submitted through SELEP and provide a clear focus on our ambitions for Essex and those of our partners in SELEP. We expect to conclude a Growth Deal with HM Government, following a period of negotiation, sometime in July. We will publish a further version of this plan reflecting the outcome of ongoing discussions with our partners – districts, boroughs and other authorities, including the two unitary authorities – and of the deal we have struck with HM Government. Cllr Kevin Bentley Deputy Leader and Cabinet Member for Economic Growth and Infrastructure Essex County Council 3 we know the level of investment that Ministers are prepared to make in the Essex economy, we will update this Plan and publish a revised draft (anticipated Autumn 2014). Where central government investment is not forthcoming, this will have a substantial impact on local partners’ ability to deliver the commitments set out within this document. 11. Whatever the level of investment local partners secure from HM Government, this plan presents proposals that build on the strengths of Essex’s cities and towns, its businesses, its universities, its international gateways and the hard work of the county’s residents. Since 2008, partners across the county have been working through challenging economic issues and positioning our county for recovery. As growth returns we want to secure the benefits for our communities, investing in infrastructure, enhancing our workforce and ensuring that our businesses continued innovation drives prosperity. Our challenges and opportunities 12. This document is a plan – not a research report. Nevertheless, our plans are based on a deep understanding of the challenges facing the Essex economy, and the opportunities for growth. They have been shaped to help us exploit our strengths, take major opportunities and tackle the challenges facing our economy. Job growth, productivity and demographic change 13. Securing sustainable growth means securing a sustained increase in the productive capacity of the Essex economy. Relative to other English counties, Essex already has a large and productive economy – it supports 626,000 jobs; some 60,000 businesses, and has a total output valued at around £30bn per year. 14. Independent projections suggest that Essex will experience substantial demographic growth between 2014 and 2021. Analysis of 2013-based forecasts from the East of England forecasting model for the period 2014-21, suggest that Essex can expect to see growth in: • overall population of around 71,000 (4.9%); • the working age-population of 13,000 (1.4%); and • the number of households of some 33,000 (5.5%). 15. To accommodate this growth, whilst maintaining current employment rates, occupancy and levels of net commuting, Essex will need to secure: • a net increase of 33,000 local jobs by 2021 – further growth will help exert downward pressure on unemployment, reduce net commuting and help address Essex’s historic jobs deficit; and • a net increase in dwelling stock of 34,000 homes – it is estimated that a further 20,000 further homes would be required to tackle currently unmet demand. 16. Levels of job growth required to sustain these demographic changes are not currently achieved within Essex. Although levels 8 This section provides background to our Economic Plan for Essex, the process through which the Plan has been developed, and the role it plays within Essex, and in supporting the South East Local Enterprise Partnership’s (SELEP’s) Strategic Economic Plan. undertaking discretionary activity to tackle examples of market failure. 7. Our Plan has also been designed to reflect the substantial changes in the national funding system for economic development. In particular, it reflects the emergence of the Single Local Growth Fund (SLGF) – a national pot bringing together capital funding for Transport, Housing and Skills Infrastructure – and through which Local Enterprise Partnerships (LEPs) can bid for funding. Around 70% of the SLGF is intended to fund the development of transport infrastructure. 8. The proposals set out in our Plan are amongst the fundamental building blocks of SELEP’s bid to the SLGF. The delivery of the proposals set out in this document is premised on a partnership with HM Government and a programme of joint investment through a local ‘Growth Deal’. The local ‘Growth Deal’ is the mechanism through which HM Government will allocate SLGF. 9. Members of the SELEP Board, including those from Essex will look to negotiate a growth deal with HM Government over summer 2014. Once this growth deal – and SLGF monies have been devolved (April 2015) – it will be for local partners, working with local businesses through the Greater Essex Business Board, to invest in programmes that unlock local growth. SLGF fund will need to be supported with local investments and additional investment leveraged from private sector developers. This section also provides an overview of the challenges and opportunities within the Essex economy. 5. 6. The Economic Plan for Essex is based on the collective ambitions of all local authorities in Essex. It identifies the steps that local partners will take together, and with the private sector and HM Government to accelerate local growth over the next seven years (2014-2021), and to lay the foundations for long-term sustainable growth in the years to follow. It sets out a portfolio of investments, projects and programmes that will deliver our growth ambitions – securing jobs, new homes, higher skills and earnings for residents across all communities in Essex. Our Plan is designed to be an enduring, long-term plan for growth in the Essex economy. It has been developed with input from public and private sector partners from across Essex. It makes clear the role that partners in local government, in higher and further education, and in central government must play in securing and accelerating economic growth. Our proposals recognise, however, that most of the growth to 2021 will be created by the private sector, the primary public sector role is to create the conditions for sustainable growth in the private sector. It may do this by exercising its statutory responsibilities (e.g. identifying land for development, building our roads, educating our children) or by exercising leadership and 10. As partners within SELEP, we expect to know the outcome of our work to secure a Growth Deal by the end of Summer 2014. Once 7 deeply entrepreneurial business culture with a relatively high number of businesses in relation to our population. Despite the economic downturn and recession, the number of businesses in Essex increased by over 9,000 between 2008 and 2012. 22. In common with national and regional patterns, the vast majority of Essex business are micro businesses – nine in every ten businesses has fewer than ten employees (and the majority have less than five) and only 1% of Essex businesses (365 such enterprises ) employ over 100 people. Although we would expect to see the pattern of business growth in Essex mirror trends underlying economic growth, there is evidence to suggest that it has become harder to set up and sustain a small business in Essex in recent years. The number of business start-ups has reduced, from almost 7,000 per year in 2007 to a low of under 6,000 per year in 2010. However, in the last two years the numbers have begun to rise and were back up to 6,540 in 2012. While the trend has seen ebbs and flows, overall business closures have increased too, from 5,700 in 2007 to just under 6,200 in 2012. Although business survival rates are broadly comparable with regional and national levels, the net effect is an erosion of Essex’s business base. 23. The fact that Essex’s business community is dominated by small and medium sized enterprises (SMEs) is a challenge for increasing productivity. In many cases, small businesses can find it difficult to commercialise new ideas, access development finance, to explore new markets (including export markets) and attract investment. This can be a particular challenge amongst emerging micro-enterprises that are established based on the specialist skills of a single entrepreneur. 24. The challenge for businesses and for productivity is underlined further by challenges in the Essex labour market. 8.5% of Essex residents have no qualifications and only 28% hold higher level (level 4) qualifications. This ‘skills deficit’ is reflected in lower value-add employment, lower productivity levels and lower earnings. But it also has a direct impact on businesses’ ability to recruit and retain employees with the right skills. Businesses across Essex consistently report skills gaps as a key challenge to business development, which may also deter new businesses with higher skills requirements from locating here. Transport infrastructure 25. The capacity of key transport corridors within Essex is a key challenge to securing growth – a challenge that partners are working together to meet. The key corridors in Essex are: A120 - Haven Gateway Corridor; A12 /Greater Eastern Main Line – Heart of Essex Corridor; M11 /West Anglia Mainline – West Essex Corridor; and A13/A127 – Thames Gateway South Essex (TGSE) Corridor 26. Key road and rail links have been placed under pressure over the past ten years due to factors such as increased trade in goods through key ports and airports; increased car ownership and relatively limited use of public transport. National government policy changes – and the letting of short-term rail franchises – 10 has, until recently militated against securing greater private investment in Essex’s rail infrastructure. 27. A significant factor affecting congestion and journey time reliability has been population growth, shifting travel to work areas (although this varies between districts), and the associated increase in transport flows. Without significant levels of capital investment from local and national government, private transport operators and developers, pressure on the network is likely to increase. Key road and rail links within and between key towns are reaching, and many are exceeding, their capacity – particularly at peak times. The use of rail is particularly important in Essex, where we have more commuters travelling into London than any other home county. 28. Local partners have sought to exploit the potential of enhanced telecommunications infrastructure as a means to prevent unnecessary journeys. This will have a wider impact on growth and productivity, as increased broadband coverage will support businesses and attract investment to Essex. It also has the potential to increase opportunities for home-working and remote-working, reducing the demand on travel networks at peak periods. The importance of this is demonstrated by recent census returns which show that the biggest change in journey to work patterns in the last 20 years has actually been the increase in people working from home. Housing 29. Housing is of fundamental importance both for the wellbeing of residents but also for the effective functioning of the local economy. Labour markets function more efficiently when there is ample supply of good quality housing for rent and for sale in all segments of the local market. Those who work in Essex, as well as those who commute to work elsewhere, need this supply. A shortage of any type of housing – for senior executives, for families, for key workers, or for low and moderate income households – hampers economic growth. 30. A ready supply of good quality, affordable housing can boost the local economy, with the majority of household expenditure supporting businesses in the local area. Also, the construction and maintenance of housing generates significant employment and GVA in its own right. Housing growth can also be a net contributor to local authorities’ revenue, both through council tax revenues and New Homes Bonus, as well as the reduction of dependence on some housing related benefits. 31. Partners’ aim, therefore, should be to ensure that a ready supply of housing is available. At present, four local plans have been prepared for district authorities in Essex. Each of these local plans sets out the scale of housing required, the mix between affordable housing and private housing, the planned rate of development and the principal locations for new development. However, this means that there are eight Essex authorities that don’t have an agreed local plan. 32. Essex’s housing challenge is considerable and complex. Chief amongst the challenges to economic growth, however, is Essex’s historic (and continuing) undersupply of housing to meet household growth. Between 2008 and 2011, in common with 11 most of the rest of England, housing completions in Essex were well below the levels suggested necessary by region-wide plans. Between 2001-02 and 2007-08, 39,422 homes were built in Greater Essex (including Southend and Thurrock) as a whole, or an average of 5,632 homes per annum. Between 2008-09 and 2012-13, this rate fell to 4,064 homes per annum. 33. Going forward, we face severe challenges. Each local authority already has, or is currently preparing, an objective assessment of their housing requirements to underpin their local plan (or developing plan). A preliminary assessment of the annual build rates currently proposed in approved local plans, and those still in preparation suggests that an annual build rate of 6,091 homes per annum or 48,728 homes is planned over the 8 years to 2021. When all local plans in Essex are complete and approved, we expect that the annual target will be between 6,500 and 7,000 homes per annum or up to 56,000 homes over the eight years. If annual completions remain at around 4000 homes per annum, as in recent years, this would lead to very significant shortfall in housing of between 16,000 and 24,000 homes over the next eight years Our Proposition This section sets out the issues that partners will work together to address, and provides a high level summary of the interventions we will make to enable growth. It also presents a high level summary of the investment package we propose to marshal; the role we expect HM Government to play, and the impact that local and national partners can have on the local economy. 34. Our analysis of the challenges and opportunities facing the Essex economy, and discussions with partners and local businesses, has allowed us to identify the key issues that need to be addressed in order to enable sustainable economic growth. Future growth, and the prosperity of our businesses, residents and communities, depends upon an effective response to these issues. 12 Issue 1: Enhancing the Essex workforce 35. In order to compete, Essex will need to develop a workforce with the right skills – and the right level of skills – to support current employers, future employers and the needs of businesses in Essex’s key growth sectors. The county’s workforce will also become a smaller component of our total population over the next seven years. Without increased labour productivity, the pressure that the changing dependency ratio could place on living standards will be an acute challenge. 36. Challenges in Essex include levels of basic literacy and numeracy, as well as skills gaps in relation to science, technology, engineering and mathematics (STEM) which are important to each of the county’s key growth sectors. In tackling this issue, there will be a need to: • ensure local skills programmes emphasise employability; • give employers a greater role in influencing the skills system - closing the gap between the needs of business and the choices learners make; • influence young people’s perceptions of careers relating to STEM; and • increase provision and facilities in the county to enable delivery of the skills programmes. Issue 2: unlocking growth in Essex’s strategic growth corridors 37. Investment to enable growth and development in established corridors offers the greater return on investment. And there are many sites which would remain undeveloped without catalytic investment in critical infrastructure. Addressing this issue means delivering and enabling significant infrastructure developments that: • help to address the capacity issues on Essex’s strategic road and rail links that place a limit on potential growth; • unlock housing growth – increasing housing supply to help ensure that residents have access to affordable housing; • unlock job growth – ensuring key growth sectors have access to the land and premises they need to expand and sustain employment; and • make Essex more attractive to investors (at home and overseas), business and the people they employ. 38. In tackling these issues, local partners will need to work to develop a joined up housing strategy and a common understanding of overarching housing need. They will also need to develop a more proactive relationship with developers and housing associations to better understand the barriers to investment and development. This can then inform the work that ECC and partners take to enable specific schemes. Issue 3: Enhancing the productivity within the Essex economy 39. Essex has the assets to exploit a competitive advantage in key sectors and to bring about a step change in local innovation and Research and Development investment. There is also potential for Essex businesses to compete in world-wide markets and 13 attract investment – potential which can be realised with access to the right finance and support. 40. In tackling this issue, it is vital that partners balance the support needs of the wider business community, with the fact that support for businesses in key growth sectors is likely to deliver a greater return for the economy at large. We need to strike the right balance of provision, ensuring that we: • improve services for start-up enterprises – encouraging new start-ups and helping fledgling businesses to survive; and • make it easy for existing businesses know how to access support, focussing on support that can enhance productivity and competitiveness (e.g. Innovation, promoting international trade, attracting inward investment). Issue 4: The reputation of Essex 41. If Essex is to attract businesses into the county, and attract investment from the UK and overseas, it needs to develop and maintain the right reputation. Research from KPMG suggests that investors focus on a small number of basic criteria when selecting locations: political stability, economic growth, the accessibility of skilled human resources, the quality of education and the availability (and cost) of real estate. 42. If Essex is to compete for investment in an increasingly globalised market, partners need to take steps to improve Essex’s performance against these criteria and – equally important – position Essex as a destination for investors. This means showcasing investment opportunities in Essex, the offer that partners can make to new businesses, and strengthening links with national agencies that promote UK trade to the world. 43. Reputation matters as much with public investors too – not least the UK Government. The lobbying and advocacy work of organisations like the Core Cities Group and Centre for Cities has enhanced the reputation of England’s core cities amongst policy makers at national level over the past ten years. Their work has been so successful that cities across England have been able to access additional funding and flexibilities from central government its City-Deal programme. 44. Despite making its case for a ‘county deal’ with Government, Essex has been excluded from this process to date. Only by enhancing Essex’s reputation as a pro-growth county with the ambition and capacity to secure growth can local partners position themselves to benefit from changes in growth policy at national level. Issue 5: Resistance to development 45. Delivering our ambitions will require local partners to achieve an unprecedented level of housing and physical development. While residents across Essex would recognize the general need for more homes and more local jobs, the specific design, location and phasing of development can in some cases, present a challenge for communities. 14 46. If partners are to achieve the level of growth and development required in Essex, they will need to engage with communities and their representatives, demonstrating the powerful case for sustainable growth and the benefits this can bring to our neighborhoods, villages, towns and cities. Issue 6: Public sector partners’ capacity to support growth 47. Essex is home to one of the most complex partnership environments in the country with one county council, twelve district, borough and city councils, two neighbouring unitary authorities, two universities and multiple further education colleges. This is in addition to the range of national agencies and private sector organisations that play a role in development, business support and workforce development. 48. This complexity presents a challenge to entrepreneurs, investors and business support providers seeking to engage with public sector partners. It also means that key skills, professional knowledge and expertise can become fragmented across multiple partners and that responsibility for key decisions is divided across multiple agencies. 49. If partners are to enable the ambition development programme outlined in this document, they will need to work together to consider new delivery mechanisms, new agreements and working practices that support delivery at pace. 50. Our Economic Plan for Essex is based on identifying and delivering the right projects and interventions to unlock economic potential. To help to do this, we have developed the following package of measures: On investment, we will: use over £100m of resources from local authorities across Essex to increase the number of projects we can deliver and in some cases the speed with which projects get off the ground and the likelihood of levering in additional support; commit to deliver £1bn of investment in infrastructure by 2021, on the projects identified below and the further projects they unlock; participate in the proposed South East Fund (SEFUND - a revolving property investment fund worth £5.2bn across the SELEP area) to support the delivery of suitable infrastructure and the creation of a longer term pipeline of development. On joined up support for enabling physical development, we will: invest in creating a major infrastructure delivery unit to bring together capacity across a range of public services, underpinned by a single infrastructure plan for the county; support the work of this unit by developing an Essex Planning Compact – a series of collective commitments to deliver planning Our interventions 15 decisions faster and to offer other customer-focussed support to large planning applications; and Our proposed investment package prepare a prospectus for all major development opportunities in the county that promotes the opportunities unlocked by the projects outlined here, which points potential investors from home and abroad to the major infrastructure delivery unit. 51. Over the next six years, partners in Essex have made an ‘in principle’ commitment of over £100m of local authority resources to leverage further investment from private investors, EU sources and HM Government’s single local growth fund (SLGF). On joined up direct support for businesses and people, we will: invest in a portfolio of capital projects that cement Essex’s competitive advantage in key sectors and positions its skills infrastructure to support future growth; deliver a targeted package of investment to expand and enhance innovation centres at the Knowledge Gateway in Colchester and Anglia Ruskin’s Med-tech campuses; integrate business support provision through joint commissioning and delivery across the county and Essex’s universities – providing a single pathway to enhanced business support; develop and expand Essex’s network of business incubation centres, and roll out a network of ‘Growth hubs’ to provide integrated business space and support; and provide clear pathways from learning to employment by establishing employer-led skills provisions, including programmes for training; the provision of information, advice and guidance; and skills brokerage. 52. At this stage, we have already identified a pipeline of growth- enabling capital investment projects totalling a value of £1.02bn to 2021. This represents the pipeline of projects for which we are seeking HM Government investment through the SLGF. We expect further growth-enabling projects to be identified and brought forward for development between 2014 and 2021. A complementary programme of growth-enabling investment will be taken forward by partners across the SELEP area, including Southend-on Sea and Thurrock. 53. Our current project pipeline includes investment in transport projects, enabling property developments and enhancements to Essex’s skills infrastructure. We expect these projects to be funded through local authority contributions, private sector investment, and the SLGF (through the SEFUND - see below - and through direct contributions to transport infrastructure). Figure 1: Growth-enabling projects by type 16 Investment in skills and sector support, £70.1m Transport £456.9m Enabling property development, £492.6m Total pipeline value: £1.02bn. These investments will be delivered in parallel with a complementary investment programmes in Southend, Thurrock and the wider SELEP area. Figure 2: Current pipeline by funding source Local authority £122.9m 54. Given proposals that the SEFUND be seeded by SLGF, our pipeline forecasts indicative local authority contributions of £122.9m to leverage investment from private and other sources of £539.8m to give an indicative local investment package of £662.7m. With an SLGF requirement of £357m (excluding £5m of revenue funding for integrated business support), our project pipeline has a local:national leverage ratio of 1.9:1. Further detail on this programme of capital investments can be found in the Growth Locations chapter below. 55. In addition to this pipeline of growth-enabling capital investments, local partners have developed a programme of support for Enterprise and Innovation, and for skills development programmes. Again, full details can be found in Productivity and People chapters to follow, but partners headline financial plans are as follows: SLGF (Direct) £255.8 SLGF (SEFUND) £101.2m Productivity: local partners have identified a package of revenue funding of some £73m over the period 2014-2021, funded by local authorities, universities, private investors and EU funding streams. Partners are seeking a further £5m from HM Government to support this programme. Skills: partners work to enhance skills will be delivered with the support of £27m of EU funding, matched 1:1 by a combination of national opt ins (£18.07m), private investment (£6.7m), local public sector investment (£0.7m) and support from the Essex Voluntary and Community sector (£2.2m).1 Developer/ private sector, £411.2m Other External Funding £128.6 Total pipeline value: £1.02bn. Local partners are seeking a further £5m of revenue funding to support the integration of business support services (as outlined in the Productivity chapter, pages 59-65). This is not shown in the chart above. 1 Essex may also exploit a further £2m share of ESF funding for community led local development to enable coastal and other deprived communities to develop local projects that support SELEP’s growth deal. 17 Co-investing with government 56. While our investment proposals require financial support from HM Government, securing sustainable growth across our county will require Ministers and Whitehall departments to do more than devolve funding. Our Economic Plan for Essex treats HM Government as an equal and active partner in the Essex economy. We are, therefore, looking to Ministers to shape national policy and practice to help enable local growth and, in so doing, secure an economic return for the UK as a whole. 57. As we bring forward transport investments, we will be asking HM Government to: commit to deliver specific national rail and road investment by agreed dates. We will be asking HM Government to make firm commitments to deliver specific national rail network, motorway, and national trunk road investments by agreed dates. These are funded through Network Rail, Highways Agency and other national budgets, and include: - the Lower Thames Crossing; a comprehensive solution to the lack of capacity at Junction 30/31 of the M25; corridor improvements on the A12, A120 and M11 (including Junction 7a); works at Brentwood and Shenfield Stations to support Crossrail development; capacity improvements and integrated transport initiatives on the Great Eastern Mainline (GEML), - - West Anglia Mainline (WAML) (including 4 tracking) and opportunities offered by Crossrail 2; exploring a smart card travel system for rail and bus travel in the Essex, Southend and Thurrock; investment in the London Underground Central Line and rolling stock, including station travel planning and interchange enhancements at Epping, Loughton, Buckhurst Hill, Chigwell and Roding Valley Stations; and use of the Network Rail National Journey Time Reduction Fund to invest in measures that would allow for increased speeds on the GEML. We are also asking that Network Rail works proactively with Essex County Council and Chelmsford City Council on the improvements needed to bring about a new station at Beaulieu Park and improved track capacity in the Chelmsford area. We will also be asking HM Government to upgrade stretches of the A13 in neighbouring Thurrock and in Essex to serve the new deep sea container port at London Gateway and to fully realise the potential of DP World’s investment. This road is not currently in the stewardship of the Highways Agency. These national network improvements are fundamental to the future prosperity of Essex and the nation as a whole. Devolve Highways Agency responsibilities to local highways authorities. 18 We will be asking HM Government to enter into a dialogue with us, and wider SELEP partners, on the practicalities of selective devolution of Highways Agency responsibilities to local highways authority where this would result in cost savings to HM Treasury, faster scheme delivery and guaranteed delivery of homes and jobs. Devolve power to make changes to the proposed transport programme. We will be asking HM Government for local flexibility within SELEP to agree any changes to the transport programme, given that we have local systems in place which enable us to manage these programmes effectively. 58. To support property infrastructure investments in Essex’s Growth locations, we will be asking HM Government to: Provide seed fund investment through the Local Growth Fund to establish SEFUND. This fund, developed by partners across the SELEP area, is designed to lever in substantial new sums of private, public and EU funding to invest in the provision of high-quality real estate infrastructure. We will be asking HM Government to provide seed capital of £331m from the SLGF which will unlock further private and European investment. In common with local authorities across the SELEP area, Essex partners have agreed, in principle, to match SEFUND investments on a project by-project basis. 59. As we implement proposals to improve productivity, we will be asking HM Government to: Grant Assisted Area Status to Tendring and CORE (Centre for Offshore Renewal Energy) status to Harwich to support the development and growth of the offshore energy sector. Extending Assisted Area Status to Tendring District will help to attract additional investment and unlock new investment sources to increase economic activity across the area. The Centres for Offshore Renewable Energy (COREs) are integral to the delivery of the UK Offshore Wind Industrial Strategy and are required to work both at a local level with the industry and also internationally to attract inward investment. We will be asking HM Government to extend CORE status to Harwich to build on the renewables sector within the local area. Ensure that the Growth Hub model deployed in Southend is replicated in Essex. Essex partners are keen to roll out a network of ‘Growth hubs’ to provide integrated business space and support. We will therefore be working with partners in Southend and TGSE to explore the possibility of their Growth Hub model providing the basis for similar arrangements across Essex. Support the integration of Essex partners’ enterprise and business support activity under a single brand. Underpinning Essex partners’ programme of enhanced business support provision will be an ambitious 19 programme of work to integrate business support arrangements in Essex under a single brand and to provide a joined-up and coherent pathway to business support (see Productivity section below). To support this, we will be asking HM Government to commit £5m in revenue funding to support this radical new approach. We will also be asking Ministers to ensure that national business support providers (e.g. Growth Accelerator, UKTI) work to integrate their programmes under this brand and pathway. 60. As we work to enhance the skills of Essex’s workforce, we will be asking HM Government to: Fund investment in skills infrastructure. The college estate in Essex needs significant investment. Essex partners wants to secure sufficient capital investment to ensure our skills infrastructure can deliver provision that meets the needs of employers and learners. To support our proposals for developing and enhancing this infrastructure (outlined in the Skills chapter below) we will be asking HM Government for a minimum of £13.8m through the SLGF. Essex partners are working with partners across the SELEP area to secure £128m of capital funding to invest in skills infrastructure over the years to 2021. Enable the Essex ESB, in partnership with the sector guilds to determine the use of Essex’s share of SELEP’s £4.3million per year adult skills budget. This ask is with providers’ agreement and would support moves towards employer-led skills provision. Redeploy unspent national initiatives funding, such as Youth Contract and current ESF projects to fund local projects that support SELEP priorities. Commit to local determination and co-commissioning of European Social Funding to ensure it will deliver local priorities. The impacts we expect to see: 61. The full impact of our plans, interventions and investment proposals will depend on the level of financial and non-financial support our plans receive from HM Government. 62. As noted above, we expect to know the outcome of our work with partners to secure a Growth Deal by the end of Summer 2014. Our plans and proposals are scalable and, once we know the level of investment that Ministers are prepared to make in the Essex economy, we will update our Plan and publish a revised draft (anticipated Autumn 2014). 63. At this stage, assuming that HM Government makes the full investment in Essex that local partners seek, our plans are expected to enable: over 117,745 new jobs to 2021; and over 81,310 new homes to 2021. 20 64. The following sections of this document provide further detail on the projects, interventions and investment that partners propose for the local economy: the Skills section provides details of partners’ proposals to improve skills across the Essex workforce; the Growth locations section provides detail of partners’ proposals to deliver growth-enabling infrastructure in Essex’s key growth corridors; and the Productivity section provides details of partners’ proposals to enhance support for enterprise and innovation and support key growth sectors within Essex. 21 Skills This section provides detail on partners’ proposals to improve skills across the Essex workforce. 65. Essex has significant opportunities for economic and employment growth. A well-educated and skilled workforce is key to realising this growth, improving the productivity of existing businesses, and attracting both new business and inward investment. 66. Improving education and skills levels also gives better life chances and opportunities for individuals and families. Partners’ goal, therefore, is to develop a workforce – and a network of education and skills provision – that is responsive to the needs of local business. This will ensure local businesses can access the skills they need to grow and that our residents can fulfil their ambitions. 67. Many of the challenges facing Essex are common to other areas of England. We know, for example, that there are too few apprenticeships and vocational training opportunities in STEM and other growth sectors; we know that many of our employers find it difficult to recruit, train and retain young people. We know too that low levels of literacy and numeracy can undermine residents’ chances of sustainable employment and undermine the productivity across the local economy. 68. But tackling the skills challenge in Essex will require something more than commissioning new skills programmes; it needs structural change of the local skills system. England’s current skills system is learner-led – it is complex and slow to respond to changing employer needs. Within this system, poor labour market awareness impedes the career choices of young people and adults. Many simply take the courses that are available through local providers – not those that will best equip them for work. The result is that young people often leave college having developed skills that do not reflect the needs of local employers and which are of limited value in our key growth sectors. This inhibits the growth of local businesses and limits opportunities for people across our county. Reforming the local skills system 69. Local partners want to see changes to the skills system that close the gap between employers and learners and give local businesses a greater role in influencing local skills provision. 70. The Essex’s Employment & Skills Board (ESB) is a driving force for positive change on skills and employment in Essex, providing leadership within the system, with members drawn largely from the private sector, but with additional members from the public and further/higher education sectors. The ESB is taking an industry intelligence driven approach, piloting a number of new employer-led initiatives. It is using a £1.05m Skills Investment Fund, provided by Essex County Council and Southend-on-Sea 22 Borough Council, to pilot innovative new skills programmes that could be mainstreamed if the case can be made to HM Government that greater local flexibility is required. 71. The ESB has set a number of priorities to increase employment and productivity through enhanced skills. These are: to create a balanced approach to training provision to ensure the needs of employers and young people are met; particularly focusing on increasing the talent pool for, and within, STEM-related sectors; to increase the proportion of residents who hold basic literacy and numeracy qualifications and employability skills; and 73. Essex’s approach to skills 74. The ESB will build on work that partners across the public and private sectors in Essex have been doing to enhance the skills of the workforce, to exploit opportunities within and across our growth sectors, and to make the system work better for learners and businesses. This includes: The ESB has agreed a number of actions against these priorities including a package of work and support with secondary schools; continuous personal development for STEM subjects; expansion of the STEM in Schools programme, and financial support for SMEs to train young recruits to boost youth employment and ensure greater productivity. The Essex Apprenticeships Programme: This programme has supported over 2,600 young people into jobs in over 100 apprenticeship frameworks – a third of which were STEMrelated. Of almost 1,400 starters by March 2011, 70% sustained employment (often with further training) beyond 12 months and a further one in five undertook further training. Essex Apprenticeships stimulated an 83% increase in the take up of apprenticeships among 16-18 year olds in Essex and, having delivered a quarter of all apprenticeship starts in National Apprenticeship Service’s pilot (2009-11), has received substantial national recognition. The Programme has delivered a return of £15.17 for every pound of public money invested – an economic impact worth some £355 million. Working closely with the provider network, the ESB, through the SELEP, seeks to influence the use of mainstream skills funding to try to address, particularly technical, skills shortages in the area. The STEM Industry in Schools project: Essex partners have been working to raise awareness of, and demand to enter, STEM-related industries amongst young people. Partners have launched a package of measures including a STEM to increase participation of young people aged 16-24 in employment, education and training through enhancing employability and basic skills, raising awareness of careers in key sectors, and stimulating apprenticeships and other employer supported vocational pathways. 72. In response, Essex Adult Community Learning will place increased focus and revenue on addressing the literacy and numeracy challenge and enhancing the employability of, particularly, our unemployed, residents. 23 Industry in Schools project, enhanced careers information and pre-apprenticeship provision. The first brings industry to life for young people and has supported over 1,000 pupils at 12 schools to engage with STEM businesses through company visits, project work and 73 pupils have industry mentors. The aim is to ensure that young people can make informed training, qualification and career choices. It has already prompted many to choose STEM related pathways. Skills Centre) and in Tendring (Harwich Energy Skills Centre), and at more specialist centres in: Basildon (Renewables/ environmental technologies); Brightlingsea (Marine engineering/boat building); Southend Airport (Aviation/aircraft maintenance); Colchester Institute (Offshore wind). The establishment of the highly regarded Essex Employment and Skills Board (ESB): www.esb.essexpartnership.org – to provide a strategic forum for employers to prioritise and affect change in the system to meet changing labour market needs. The Skills for Economic Growth project: has filled a gap in local skills provision by providing opportunities to up-skill the workforce in key sectors. The project has supported 140 SMEs across Essex with bespoke higher level skills training since April 2013. The project has delivered an economic return of £45 for each £1 of public money invested, with SMEs who have received support estimating an impact equivalent to some £8.6 million in new business. The Greater Essex Skills Evidence Base2: designed to inform and influence skills providers across Essex, this assessment of current and future skills and employment needs offers a rich source of industry intelligence for Essex’s districts and sectors. The latest edition of the evidence base was published in November 2013. The Greater Essex skills evidence base has inspired a similar SELEP wide assessment of skills demand. Previous industry intelligence has helped to unlock millions of pounds for capacity improvements and direct delivery at multi-disciplinary skills centres on Canvey Island (Canvey 2 For a summary, please follow the link - http://essexpartnership.org/content/essex-skillsevidence-base-summary Essex’s Transformational Skills Programme: has contributed to reducing the proportion of young people, 16-19, NEETs – from 6.9% in March 2010 to 4.7% as at February 2014. Essex is using a real-time statistical approach to tracking NEET young people with a view to matching them to available opportunities and support. The average lifetime cost of a NEET is estimated as £160k in benefits costs and lost earnings. This demonstrates the importance of early intervention. Enhancing provision 75. Under the leadership of the ESB, Essex partners will provide clear pathways from learning to employment by establishing employer-led skills provisions, including programmes for training; the provision of information, advice and guidance; and skills brokerage; and 24 invest in a portfolio of capital projects that will cement Essex’s competitive advantage in key sectors and positions its skills infrastructure to support future growth. 76. apprenticeships at all levels in STEM sectors to meet skills shortages. improved employer-led Skills Brokerage to simplify recruitment and skills development at all levels for SMEs (e.g. GTA, Guilds, etc.) promoting work placements, apprenticeships, graduate level internships – to increase the supply of skills to STEM sectors. Taken together our plans will ensure employer-led skills provision, targeted towards Essex’s key growth sectors. They will continue to push the boundaries of what can be delivered within the existing employment and skills system to ensure provision better reflects needs in the economy. 77. The Essex ESB also invest in improving employer-led infrastructure to provide clearer engagement routes for employers to ensure a better match between skills supply and recruitment demand through the SELEP-wide Supporting Workforce Skills Portal. 78. The ESB will also work with local partners, and through the SELEP, to realise our ambitions for deploying European Social Fund (ESF). The ESB will commission EU funded activity, matched pound for pound by a combination of national opt ins, local private, public and third sector contributions. This will deliver: enhanced Information, Advice and Guidance (IAG) provision to help young people and adults make informed training, qualification and career choices through local industry-led engagement programmes e.g. STEM Industry in Schools project. an up-skilling of the Essex workforce through bespoke employer-led higher level skills training for employers, including leadership and management skills training. This aims to improve employer competitiveness and productivity, enables individuals to progress in work, thereby potentially increasing new employment opportunities. We will also support retraining for adults wishing to acquire STEMrelated skills. a series of activities aimed at increasing social inclusion, smoothing transitions to work, and reducing youth unemployment. Support will include work experience, interventions for 15-19 year olds to reduce early entrants into the benefits system, on-going support for employers and job entrants and soft skills support packages to promote participation, access and retention. 79. We envisage that this activity will be delivered with the support of £27m of EU funding, matched 1:1 by a combination of national opt ins (£18.07m), private investment (£6.7m) local increases in the number of apprenticeships and other vocational provision, by stimulating demand from employers through financial incentives to increase the number of 25 Co-investing with government 56. While our investment proposals require financial support from HM Government, securing sustainable growth across our county will require Ministers and Whitehall departments to do more than devolve funding. Our Economic Plan for Essex treats HM Government as an equal and active partner in the Essex economy. We are, therefore, looking to Ministers to shape national policy and practice to help enable local growth and, in so doing, secure an economic return for the UK as a whole. 57. As we bring forward transport investments, we will be asking HM Government to: commit to deliver specific national rail and road investment by agreed dates. We will be asking HM Government to make firm commitments to deliver specific national rail network, motorway, and national trunk road investments by agreed dates. These are funded through Network Rail, Highways Agency and other national budgets, and include: - the Lower Thames Crossing; a comprehensive solution to the lack of capacity at Junction 30/31 of the M25; corridor improvements on the A12, A120 and M11 (including Junction 7a); works at Brentwood and Shenfield Stations to support Crossrail development; capacity improvements and integrated transport initiatives on the Great Eastern Mainline (GEML), - - West Anglia Mainline (WAML) (including 4 tracking) and opportunities offered by Crossrail 2; exploring a smart card travel system for rail and bus travel in the Essex, Southend and Thurrock; investment in the London Underground Central Line and rolling stock, including station travel planning and interchange enhancements at Epping, Loughton, Buckhurst Hill, Chigwell and Roding Valley Stations; and use of the Network Rail National Journey Time Reduction Fund to invest in measures that would allow for increased speeds on the GEML. We are also asking that Network Rail works proactively with Essex County Council and Chelmsford City Council on the improvements needed to bring about a new station at Beaulieu Park and improved track capacity in the Chelmsford area. We will also be asking HM Government to upgrade stretches of the A13 in neighbouring Thurrock and in Essex to serve the new deep sea container port at London Gateway and to fully realise the potential of DP World’s investment. This road is not currently in the stewardship of the Highways Agency. These national network improvements are fundamental to the future prosperity of Essex and the nation as a whole. Devolve Highways Agency responsibilities to local highways authorities. 18 83. 84. formal recognition of the role of the ESB in leading and shaping a higher value system of skills and employment provision; The capital investment that partners propose for developing and enhancing the college estate and is contained within the tables in the Growth Locations section of this document. To deliver these projects, we have requested a minimum of £13.8m from HM Government through the SLGF. We anticipate that this would be matched with funding from local and other partners of some £31.15 million. Overall, Essex partners are working with others across the SELEP area to secure £128m of capital funding to invest in skills infrastructure over the years to 2021. support (financially and practical) for the mechanisms the ESB wants to put in place in order to help create a more employer responsive system; and freedoms and flexibility to allow local determination of the skills programmes commissioned in Essex against clear, measureable outcomes. 88. Reinventing the skills system to unlock growth 85. 86. 87. enable the Essex ESB, in partnership with the sector guilds to determine the use of Essex’s share of SELEP’s £4.3million per year adult skills budget, in order to address skills shortages in priority sectors. This ask is with providers’ agreement and would support moves towards employer-led skills provision; Having considered what the ESB can do within the existing skills and employment support system, Essex partners – and wider partners across the SELEP area – are keen to exert greater local influence over, and reshape the local delivery of, national skills programmes. As national funding for adult skills programmes is reduced (as part of wider public spending reductions) targeting scarce resources to deliver our growth aspirations will be imperative. To deliver a transformational impact Essex partners seek greater flexibilities and local determination over skills spending. This includes the redeployment of mainstream funding to roll out successful employer-led skills pilots championed by the ESB. Essex partners, together with others across the SELEP area, are seeking: We have therefore joined with partners across the SELEP to ask HM Government to: redeploy unspent national initiatives funding, such as Youth Contract and current ESF projects to fund local projects that support SELEP priorities; and commit to local determination and co-commissioning of European Social Funding to ensure it will deliver local priorities. 89. With these freedoms and flexibilities we believe that we can achieve a significant improvement in skills and employability outcomes in Essex. We are working on the specific targets and 27 outcomes both locally and across the SELEP area, but for Essex we estimate that over the period 2014 to 2020, we can: significantly increase the number of businesses, particularly smaller businesses, engaged in skills development of current workforce and bringing on new entrants; increase the number of young learners undertaking vocational STEM subjects and entering key industries in order to address skills shortages; increase participation and significantly reduce the number of 16-18 NEET young people and 19-24 year old unemployed; exceed the England average for basic literacy and numeracy skills amongst our adult population and increase participation in higher skills acquisition; and work in a much more efficient way with other publically funded organisations to deliver an improved, value-formoney service to employers and residents. Growth locations This section provides detail of partners’ proposals to deliver growth-enabling infrastructure in Essex’s key growth corridors. 90. Covering an area more than twice the size of Greater London, Essex has diverse strengths and is positioned to exploit an equally diverse range of opportunities. To the south we are part 28 of the Thames Gateway, the largest regeneration area in Europe. To the north, there are important links with Suffolk via the Haven Gateway. The west of the county is part of the LondonStansted-Cambridge Corridor (LSCC); and in the heart of Essex, the city of Chelmsford provides an important regional centre. The county provides an excellent location for business links and commuting to London, and key international links via the London Gateway and Harwich ports, and Stansted and Southend Airports. 91. Essex is a diverse county where the economic potential is not restricted to our towns and cities. Many of our residents live in rural villages and coastal towns. Our coastal towns, particularly in the Haven Gateway, face a number of socio-economic challenges, with deprivation levels above the national average, low levels of economic activity and comparatively low proportions of employment in higher skilled occupations. This makes it even more important that we capitalise on the economic opportunities to attract investment into these areas and increase economic activity. Through SELEP, the Coastal Communities Group is working on interventions to promote growth in these areas and intervene on key issues such as the housing market in coastal towns. 92. Three quarters of Essex’s land area is given over to food production and processing, and the rural areas of the county are also home to a wide range of small businesses from creative media through design to event catering. Proximity to London, the coast and international airports makes rural Essex an ideal location for business growth, provided the right market and planning conditions exist. Road links are generally good and while there are some issues relating to road capacity, public transport links and high residential property prices, commercial rents in rural Essex are an attractive alternative to town and city centre locations, along with the quality of life in these working environments. Transport 93. Investment in transport is at the heart of our plans to achieve growth, and there is clear evidence that a comprehensive and efficient transport system is an important enabler of sustained economic prosperity. We know that delays and unreliability on the network have direct costs to people and businesses, increasing business costs and affecting productivity and innovation. With much of the travel that takes place within the county influenced by transport assets of a national nature, ensuring that they operate efficiently is critical not just to Essex, but to the UK economy as a whole. 94. Essex’s transport assets also act as economic drivers in their own right, and include the airports and ports mentioned above, as well as nationally important trunk roads (M25, M11, A12, and A120) and nationally important rail networks (Great Eastern Main Line, West Anglia Main Line, Essex Thameside and the London Underground Central Line). It will be vital to ensure that effective co-ordination and planning takes place to target investment in a way that provides the stimulus to the creation of jobs and homes. 29 95. Essex is applying an incremental approach to ensuring that our infrastructure networks are fit for purpose and support economic growth. This entails: prioritising the maintenance and smarter use of our existing infrastructure networks; making targeted investments to address local network stress points and local network development; and promoting larger scale projects where these are required to most effectively underpin economic growth. 96. The full list of transport schemes that we want to see delivered in Essex is attached as Annex A. Map 1 (see below) also provides an overview of the national road and rail transport schemes that are of strategic importance to Essex and our growth corridors. land and assets in their ownership to better manage their estates and bring forward surplus assets for redevelopment. Central to Essex’s pilot work has been the design and use of the Essex Property Asset Map (EPAM). EPAM allows partners, for the first time, to view the majority of public property holdings in any area in Essex, allowing them to identify rationalisation opportunities. 99. This identification of land is feeding into the Housing and Public Sector Land project which is being taken forward through the Whole Essex Community Budget programme, this has seen public sector partners working together to develop a new operational model to bring forward public sector land and buildings to address the housing needs of residents. Housing 97. Housing is of fundamental importance for the effective functioning of the local economy, with ample supply of good quality housing for rent and for sale required in all segments of the local market. This is critical to meet the needs of those living and working in Essex, and to make the area an attractive location for businesses. The shortage of good quality affordable housing to meet current and projected demand, a lack of available development land, and reluctance from private sector developers to build on available land are all issues that we need to address. 98. As a leading pilot area in the governments One Public Estates pilot scheme, Essex authorities are actively identifying public 30 Map 1: National road and rail schemes of strategic importance to Essex’s growth corridors 31 Broadband 100. Given the pressures on Essex’s transport system, local partners have sought to exploit the potential of enhanced telecommunications infrastructure as a means to prevent unnecessary journeys. This will have a wider impact on growth and productivity, as better broadband connectivity will facilitate greater efficiencies through improved business processes, transportation and supply chain efficiencies, as well as reducing the environmental impact of economic activity. 101. Investment in broadband also has the potential to reduce reliance on high-carbon transportation by enabling greater opportunity for remote and flexible working, and improving connectivity in some of Essex’s more remote and isolated areas. Better broadband access will make it easier for businesses across all areas of Essex to reduce costs and sell goods and services across global markets. 102. A £25m programme of public/private investment has been approved through Broadband Delivery UK (BDUK) to roll-out superfast broadband infrastructure across much of Essex. This is part of the wider Superfast Essex project, which will bring improved and superfast broadband to homes and businesses across the county. However, the BDUK project will only extend to approximately 87% of Essex. Further funding is required to address the remaining 13% of households. Partners are exploring a number of potential avenues to deliver this investment, including using local authority budgets and leveraging private sector funding. Infrastructure development pipeline 103. Essex partners have identified a pipeline of transport and property infrastructure projects that will unlock opportunities for new housing and jobs across our county, increase productivity, and support the development of Essex’s workforce. To ensure that these projects can be effectively delivered, local partners have committed to: ‘in principle’ use of over £100m of resources from local authorities across Essex to increase the speed with which development projects get off the ground and the likelihood of levering in additional support; and using this to secure a pipeline of transport and property infrastructure development worth £1bn by 2021, on the projects identified and the further projects they unlock. 104. To help overcome some of the barriers to physical development partners also propose to: create a major infrastructure delivery unit to bring together capacity across a range of public services; underpin the work of this unit by developing a single infrastructure plan for the county; develop an Essex Planning Compact – a series of collective commitments to deliver planning decisions faster and to offer other customer-focussed support to large planning applications; and develop an Essex Property Partnership Board which can work with the delivery unit to support the use of local 32 authorities’ assets to incentivise investment on a projectby-project basis. In addition to this, partners propose to highlight the opportunities that Essex offers to potential investors, by preparing a prospectus for all major development opportunities in the county. South East Fund 105. To fund the property infrastructure component of our development pipeline, Essex partners have agreed to participate in the new South East Fund (SEFUND) with partners from across the wider SELEP area. 106. The concept of SEFUND has been developed as a real estate investment fund that will lever in substantial new sums of private, public and EU funding to invest in the provision of high quality infrastructure. On the basis of the seed capital from the SELEP Growing Places Fund, Local Growth Fund investment and contributions from our local authorities, it is conservatively estimated that this will unlock £4.9bn of local authority and private investment across the SELEP area and give SEFUND a total financing reach of at least £5.2bn by March 2021. 107. As part of this proposal Essex County Council, together with local authority partners in Kent, Medway, East Sussex, Southend and Thurrock have made an “in principle” commitment to provide up to £250m over the six years to 2021 to match SEFUND investments in real estate development projects. Essex County Council’s Cabinet have already made a commitment of up to £115m. We envisage that district and borough council’s investment in SEFUND projects will further increase local authority investment. 108. SEFUND will be a largely recyclable fund for investment in real estate development projects which could be financially viable if they were able to attract initiating finance. Such projects are untenable in the current illiquid investment market. SEFUND will either accelerate delivery of existing schemes, or alternatively secure delivery of schemes which would otherwise not have occurred at all. All SEFUND investments will need to be compliant with State Aid legislation. 109. To support SEFUND, Essex partners – and other partners across the SELEP area - will be asking HM Government to provide seed capital of £331m from the SLGF over the next six years, recycled monies from the Growing Places Fund, and £17m from ERDF. This will unlock further private and European investment. Targeting investment in Essex’s growth corridors 110. Achieving our ambition for the whole of Essex depends upon providing the right conditions for growth and focusing investment in specific strategic locations – our ‘Growth locations’. But to maximise the impact of investment, our Growth locations need to be supported with appropriate infrastructure that will give firms the confidence to invest. This includes fit for purpose business premises, efficient and effective transport infrastructure, utilities, and communications networks. 111. Based on partners’ deep and shared understanding of Essex’s economic geography and infrastructure, we believe that by 33 83. 84. formal recognition of the role of the ESB in leading and shaping a higher value system of skills and employment provision; The capital investment that partners propose for developing and enhancing the college estate and is contained within the tables in the Growth Locations section of this document. To deliver these projects, we have requested a minimum of £13.8m from HM Government through the SLGF. We anticipate that this would be matched with funding from local and other partners of some £31.15 million. Overall, Essex partners are working with others across the SELEP area to secure £128m of capital funding to invest in skills infrastructure over the years to 2021. support (financially and practical) for the mechanisms the ESB wants to put in place in order to help create a more employer responsive system; and freedoms and flexibility to allow local determination of the skills programmes commissioned in Essex against clear, measureable outcomes. 88. Reinventing the skills system to unlock growth 85. 86. 87. enable the Essex ESB, in partnership with the sector guilds to determine the use of Essex’s share of SELEP’s £4.3million per year adult skills budget, in order to address skills shortages in priority sectors. This ask is with providers’ agreement and would support moves towards employer-led skills provision; Having considered what the ESB can do within the existing skills and employment support system, Essex partners – and wider partners across the SELEP area – are keen to exert greater local influence over, and reshape the local delivery of, national skills programmes. As national funding for adult skills programmes is reduced (as part of wider public spending reductions) targeting scarce resources to deliver our growth aspirations will be imperative. To deliver a transformational impact Essex partners seek greater flexibilities and local determination over skills spending. This includes the redeployment of mainstream funding to roll out successful employer-led skills pilots championed by the ESB. Essex partners, together with others across the SELEP area, are seeking: We have therefore joined with partners across the SELEP to ask HM Government to: redeploy unspent national initiatives funding, such as Youth Contract and current ESF projects to fund local projects that support SELEP priorities; and commit to local determination and co-commissioning of European Social Funding to ensure it will deliver local priorities. 89. With these freedoms and flexibilities we believe that we can achieve a significant improvement in skills and employability outcomes in Essex. We are working on the specific targets and 27 outcomes both locally and across the SELEP area, but for Essex we estimate that over the period 2014 to 2020, we can: significantly increase the number of businesses, particularly smaller businesses, engaged in skills development of current workforce and bringing on new entrants; increase the number of young learners undertaking vocational STEM subjects and entering key industries in order to address skills shortages; increase participation and significantly reduce the number of 16-18 NEET young people and 19-24 year old unemployed; exceed the England average for basic literacy and numeracy skills amongst our adult population and increase participation in higher skills acquisition; and work in a much more efficient way with other publically funded organisations to deliver an improved, value-formoney service to employers and residents. Growth locations This section provides detail of partners’ proposals to deliver growth-enabling infrastructure in Essex’s key growth corridors. 90. Covering an area more than twice the size of Greater London, Essex has diverse strengths and is positioned to exploit an equally diverse range of opportunities. To the south we are part 28 of the Thames Gateway, the largest regeneration area in Europe. To the north, there are important links with Suffolk via the Haven Gateway. The west of the county is part of the LondonStansted-Cambridge Corridor (LSCC); and in the heart of Essex, the city of Chelmsford provides an important regional centre. The county provides an excellent location for business links and commuting to London, and key international links via the London Gateway and Harwich ports, and Stansted and Southend Airports. 91. Essex is a diverse county where the economic potential is not restricted to our towns and cities. Many of our residents live in rural villages and coastal towns. Our coastal towns, particularly in the Haven Gateway, face a number of socio-economic challenges, with deprivation levels above the national average, low levels of economic activity and comparatively low proportions of employment in higher skilled occupations. This makes it even more important that we capitalise on the economic opportunities to attract investment into these areas and increase economic activity. Through SELEP, the Coastal Communities Group is working on interventions to promote growth in these areas and intervene on key issues such as the housing market in coastal towns. 92. Three quarters of Essex’s land area is given over to food production and processing, and the rural areas of the county are also home to a wide range of small businesses from creative media through design to event catering. Proximity to London, the coast and international airports makes rural Essex an ideal location for business growth, provided the right market and planning conditions exist. Road links are generally good and while there are some issues relating to road capacity, public transport links and high residential property prices, commercial rents in rural Essex are an attractive alternative to town and city centre locations, along with the quality of life in these working environments. Transport 93. Investment in transport is at the heart of our plans to achieve growth, and there is clear evidence that a comprehensive and efficient transport system is an important enabler of sustained economic prosperity. We know that delays and unreliability on the network have direct costs to people and businesses, increasing business costs and affecting productivity and innovation. With much of the travel that takes place within the county influenced by transport assets of a national nature, ensuring that they operate efficiently is critical not just to Essex, but to the UK economy as a whole. 94. Essex’s transport assets also act as economic drivers in their own right, and include the airports and ports mentioned above, as well as nationally important trunk roads (M25, M11, A12, and A120) and nationally important rail networks (Great Eastern Main Line, West Anglia Main Line, Essex Thameside and the London Underground Central Line). It will be vital to ensure that effective co-ordination and planning takes place to target investment in a way that provides the stimulus to the creation of jobs and homes. 29 Map 1: National road and rail schemes of strategic importance to Essex’s growth corridors 31 Haven Gateway Growth Corridor Transport Investment Investment Scheme Location and name Brief description Transport Package accessibility to growth areas by mix of modes Highway asset renewal, traffic management, congestion relief, cycling, safety & public transport measures A12 access slips and improved access around Stanway (B1022 - Heckford bridge) and Beerchurch Hall Road Highway asset renewal, traffic management, congestion relief, cycling, safety & public transport measures Highway asset renewal, traffic management, congestion relief, cycling, safety & public transport measures Highway asset renewal, traffic management, congestion relief, cycling, safety & public transport measures B1022 Colchester to Maldon Route based Strategy Colchester Stanway Pinch Point package A137 Colchester to Manningtree Route Based Strategy A1124 Colchester to Halsted Route Based Strategy A134, Colchester to Sudbury Route Based Strategy TOTAL Full cost (£m) SLGF Local authority 4 2 2 12 10 8 3 4 Private Other Jobs created Homes created 437 0 437 1800 5 754 665 2 2 754 665 4 2 2 754 665 137.5 88.9 32.6 24,093 28,538 Jobs Created Homes Created 1122 541 30 505 300 0 2 10 6 Table 2: SEFUND projects within the A120 Haven Gateway Corridor Investment Scheme Location and name Panfield Lane Innovation and Enterprise Business Park Town Centre Improvements (Braintree Town Centre Regeneration) Harwich Supply Based Limited Brief description Full cost (£m) Local authority SLGF Mixed use development west of Braintree, including new homes and a new employment site. 42 2 Regeneration project on a 0.7 ha site comprising an existing bus station and community centre. 20 5 1 Development of a small boat harbour at Gas House Creek with facilities that will service the requirements of 3.5 2.25 1.25 Private Other 40 14 38 Broadband 100. Given the pressures on Essex’s transport system, local partners have sought to exploit the potential of enhanced telecommunications infrastructure as a means to prevent unnecessary journeys. This will have a wider impact on growth and productivity, as better broadband connectivity will facilitate greater efficiencies through improved business processes, transportation and supply chain efficiencies, as well as reducing the environmental impact of economic activity. 101. Investment in broadband also has the potential to reduce reliance on high-carbon transportation by enabling greater opportunity for remote and flexible working, and improving connectivity in some of Essex’s more remote and isolated areas. Better broadband access will make it easier for businesses across all areas of Essex to reduce costs and sell goods and services across global markets. 102. A £25m programme of public/private investment has been approved through Broadband Delivery UK (BDUK) to roll-out superfast broadband infrastructure across much of Essex. This is part of the wider Superfast Essex project, which will bring improved and superfast broadband to homes and businesses across the county. However, the BDUK project will only extend to approximately 87% of Essex. Further funding is required to address the remaining 13% of households. Partners are exploring a number of potential avenues to deliver this investment, including using local authority budgets and leveraging private sector funding. Infrastructure development pipeline 103. Essex partners have identified a pipeline of transport and property infrastructure projects that will unlock opportunities for new housing and jobs across our county, increase productivity, and support the development of Essex’s workforce. To ensure that these projects can be effectively delivered, local partners have committed to: ‘in principle’ use of over £100m of resources from local authorities across Essex to increase the speed with which development projects get off the ground and the likelihood of levering in additional support; and using this to secure a pipeline of transport and property infrastructure development worth £1bn by 2021, on the projects identified and the further projects they unlock. 104. To help overcome some of the barriers to physical development partners also propose to: create a major infrastructure delivery unit to bring together capacity across a range of public services; underpin the work of this unit by developing a single infrastructure plan for the county; develop an Essex Planning Compact – a series of collective commitments to deliver planning decisions faster and to offer other customer-focussed support to large planning applications; and develop an Essex Property Partnership Board which can work with the delivery unit to support the use of local 32 authorities’ assets to incentivise investment on a projectby-project basis. In addition to this, partners propose to highlight the opportunities that Essex offers to potential investors, by preparing a prospectus for all major development opportunities in the county. South East Fund 105. To fund the property infrastructure component of our development pipeline, Essex partners have agreed to participate in the new South East Fund (SEFUND) with partners from across the wider SELEP area. 106. The concept of SEFUND has been developed as a real estate investment fund that will lever in substantial new sums of private, public and EU funding to invest in the provision of high quality infrastructure. On the basis of the seed capital from the SELEP Growing Places Fund, Local Growth Fund investment and contributions from our local authorities, it is conservatively estimated that this will unlock £4.9bn of local authority and private investment across the SELEP area and give SEFUND a total financing reach of at least £5.2bn by March 2021. 107. As part of this proposal Essex County Council, together with local authority partners in Kent, Medway, East Sussex, Southend and Thurrock have made an “in principle” commitment to provide up to £250m over the six years to 2021 to match SEFUND investments in real estate development projects. Essex County Council’s Cabinet have already made a commitment of up to £115m. We envisage that district and borough council’s investment in SEFUND projects will further increase local authority investment. 108. SEFUND will be a largely recyclable fund for investment in real estate development projects which could be financially viable if they were able to attract initiating finance. Such projects are untenable in the current illiquid investment market. SEFUND will either accelerate delivery of existing schemes, or alternatively secure delivery of schemes which would otherwise not have occurred at all. All SEFUND investments will need to be compliant with State Aid legislation. 109. To support SEFUND, Essex partners – and other partners across the SELEP area - will be asking HM Government to provide seed capital of £331m from the SLGF over the next six years, recycled monies from the Growing Places Fund, and £17m from ERDF. This will unlock further private and European investment. Targeting investment in Essex’s growth corridors 110. Achieving our ambition for the whole of Essex depends upon providing the right conditions for growth and focusing investment in specific strategic locations – our ‘Growth locations’. But to maximise the impact of investment, our Growth locations need to be supported with appropriate infrastructure that will give firms the confidence to invest. This includes fit for purpose business premises, efficient and effective transport infrastructure, utilities, and communications networks. 111. Based on partners’ deep and shared understanding of Essex’s economic geography and infrastructure, we believe that by 33 focusing development on the county’s strategic corridors we can achieve the greatest economic outcomes. This targeted approach allows us to build on partners’ previous successes and current investment commitments’, make use of established delivery and governance structures; and to maximise growth whilst securing best value for public money. 112. These strategic growth corridors in which Essex partners will target investment are set out below. Growth Corridors: A120 - Haven Gateway 113. The Haven Gateway Growth Corridor includes the districts of Braintree, Colchester and Tendring, and links Harwich International Port in the east to Stansted Airport and the M11 in the west via the A120. It is one of the key international gateways to the UK; home to Harwich International Port, one of the UK’s leading multi-purpose freight and passenger ports, and supporting the neighbouring port of Felixstowe. 114. The growth opportunities astride the A120 are in Braintree, Colchester district and Tendring and are generated both from ready access to Stansted Airport and the ports of Harwich and Felixstowe. We see distinctive investment opportunities in low carbon and renewables sectors, offshore wind energy, manufacturing, and logistics. The University of Essex Knowledge Gateway will provide a world class resource to support the use of data analytics and data science by a range of businesses creating 2,000 high value jobs. Work to develop the Tendring Europark site at Horsley Cross will enable the creation of a new industrial park with potential for hundreds of new jobs. The Harwich Supply Base project and an Energy Skills Centre in Harwich will help support the low carbon and renewables sector. Planned developments, such as Pond Hall Farm, and the major port development at Bathside Bay in the longer term will also help to unlock further growth around the Haven Ports to 2021 and beyond. 115. Colchester already has a track record of delivering the highest number of new homes within SELEP, and will accommodate significant future growth. Development is planned for the town centre and the Northern Gateway creating a new leisure/sporting hub and leveraging £60m of private investment. A digital incubation centre for the creative industries in the heart of Colchester will support this priority sector. The development of a STEM training centre will help raise local skills to support priority sectors across the Corridor. 116. At present the Corridor’s growth potential is limited by capacity on the A120. The development of the A120, particularly dualling key sections will dramatically improve access along the corridor, unlocking growth and enabling both Harwich and Stansted to realise their economic potential. 117. In addition, within this corridor there are significant long-term opportunities for growth, and it will be important to ensure that Essex and its partners continue to lobby for and promote these opportunities. Once the A120 works are completed, this will dramatically improve connections along the corridor and there will be potential to develop further sites and expand existing locations, taking advantage of proximity to Stansted, Harwich 34 and Colchester. Furthermore, in Harwich, the proposals to develop Bathside Bay, a £300m container terminal scheme, would support the offshore wind cluster based at Harwich. Requests to Government to grant Assisted Area Status to Tendring and make Harwich a Centre for Offshore Renewables (CORE) location would significantly increase the future investment potential in the area if granted. Our plans for Growth 118. We have identified investment opportunities in the Haven Gateway Growth Corridor, along with key transport infrastructure improvements, that will help to realise the economic potential across this area. These are displayed on the map below, and the projects are summarised in tables 1 -3 below. In total, our plans for the A120 - Haven Gateway Growth Corridor will enable 32,246 homes and 29,075 jobs by 2021. To unlock this growth potential, local authorities will invest £47.6m, matched with £67.4m of external funding. We are requesting £129.6m of SLGF to match this investment. Together, this will leverage approximately £90.5m of private sector investment. 35 Haven Gateway Growth Corridor Transport Investment Investment Scheme Location and name Brief description Transport Package accessibility to growth areas by mix of modes Highway asset renewal, traffic management, congestion relief, cycling, safety & public transport measures A12 access slips and improved access around Stanway (B1022 - Heckford bridge) and Beerchurch Hall Road Highway asset renewal, traffic management, congestion relief, cycling, safety & public transport measures Highway asset renewal, traffic management, congestion relief, cycling, safety & public transport measures Highway asset renewal, traffic management, congestion relief, cycling, safety & public transport measures B1022 Colchester to Maldon Route based Strategy Colchester Stanway Pinch Point package A137 Colchester to Manningtree Route Based Strategy A1124 Colchester to Halsted Route Based Strategy A134, Colchester to Sudbury Route Based Strategy TOTAL Full cost (£m) SLGF Local authority 4 2 2 12 10 8 3 4 Private Other Jobs created Homes created 437 0 437 1800 5 754 665 2 2 754 665 4 2 2 754 665 137.5 88.9 32.6 24,093 28,538 Jobs Created Homes Created 1122 541 30 505 300 0 2 10 6 Table 2: SEFUND projects within the A120 Haven Gateway Corridor Investment Scheme Location and name Panfield Lane Innovation and Enterprise Business Park Town Centre Improvements (Braintree Town Centre Regeneration) Harwich Supply Based Limited Brief description Full cost (£m) Local authority SLGF Mixed use development west of Braintree, including new homes and a new employment site. 42 2 Regeneration project on a 0.7 ha site comprising an existing bus station and community centre. 20 5 1 Development of a small boat harbour at Gas House Creek with facilities that will service the requirements of 3.5 2.25 1.25 Private Other 40 14 38 Investment Scheme Location and name Brief description Jobs Created Homes Created 240 0 162 0 840 0 37 1002 255 Full cost (£m) SLGF Local authority 2.5 1.5 1 8 4 43 1.55 44 7 10 4 2 4 468 2203 4.6 2.4 2 0.2 198 0 0.5 0.15 0.15 0.2 258 0 9.35 4.8 2.2 0.2 56 78 10 6 4 306 126 197.45 40.65 15.05 4,982 3,708 Private Other the offshore energy sector. Witham Enterprise Centre Knowledge Gateway Innovation Centre Skyline 120 Phase 2 Pond Hall Farm - new substation required Northern Gateway Employment Area Parkside Phases 1A and 2, University of Essex, Knowledge Gateway Colchester NGA Broadband for Business Parks Colchester Town Centre Growth Location River Walls Improvements Develop an Enterprise Centre in Witham as part of a network of centres across Essex. Construction of a 20,000 sq ft innovation centre to create a regionally significant resource for the intensive incubation of businesses linked to the University's strengths in research. Further development of the Skyline 120 commercial and industrial site. Site to be developed to provide a new residential, retail and leisure destination for Harwich as well as providing commercial land for employment uses. Supports the development of land to the North of Colchester Town as a leisure/sporting hub. Construction of a further 21,200 sq ft of small office and research and development units in response to the success of phase 1. Deliver Next Generation Access (NGA) broadband (30 Mbps and above) to business parks in Colchester Borough to meet enterprise needs for high speed, reliable connectivity. Activities to make Colchester a hub for culture, heritage and creativity, building on the success of the firstsite art gallery. Enabling work to allow development along King Edward Quay to the south of the river. TOTAL 4 1.45 40 80.4 2.15 61.35 Table 3: Skills projects within the A120 Haven Gateway Corridor 39 Haven Gateway Growth Corridor Skills Investments Investment Scheme Location and name Brief description STEM at Braintree College STEM at Braintree College TOTAL OVERALL TOTAL Full cost (£m) SLGF 5.5 Local authority Private Other 3.75 0.5 1.25 5.5 3.75 0.5 1.25 340.45 133.3 90.9 68.6 47.65 Jobs Created Homes Created 29,075 32,246 40 Growth Corridors: A12 and Great Eastern mainline Heart of Essex 119.The Heart of Essex growth corridor runs through the centre of Essex, linking London to the Haven ports, and onwards to Norfolk and Suffolk. The A12 and the Great Eastern Main Line (GEML) rail services link the key urban centres of Brentwood, Chelmsford, Colchester and Maldon. The corridor has strong links with the London labour market, supporting substantial commuter flows to and from the capital. These links will grow and strengthen as Crossrail is completed, when new services will stop at Brentwood and Shenfield, both of which will benefit from planned improvement works to facilitate these new services. 120.There are significant growth initiatives and new business developments within the City of Chelmsford, supported by city centre public realm improvements, Chelmer Waterside, an integrated transport package and a new railway station in north Chelmsford (Beaulieu Park). Flood prevention work will also play an important role in protecting existing and new developments (in particular Chelmer Waterside). Chelmsford is a major centre for higher education and secondary education and will also be host to the Chelmsford Innovation Centre (MedBIC), one of the Anglia Ruskin Med Tech campuses, supporting the growing life sciences and health care sector. employer-led STEM & Enterprise Skills Centre in Maldon, which will provide training and apprenticeships in STEM sectors to develop a pipeline of skilled labour to improve the productivity of local firms and enable the expansion of advanced manufacturing. 122.Additional investment in rail and road infrastructure is essential for unlocking the full economic potential of the Corridor, and a package of investment is proposed to address bottlenecks on the A12 to support growth. Plans for Growth 123.We have identified investment opportunities in the Heart of Essex Growth Corridor, along with key transport infrastructure improvements, that will help to realise the economic potential across this area. These are displayed on the map below, and the projects are summarised in tables 4 to 6. 124.Within the Heart of Essex Growth Corridor we will enable an additional 15,514 homes and 19,104 jobs by 2021. To unlock this growth potential, local authorities will invest £23.8m, matched with £15.7m of external funding. We are requesting £79m of SLGF to match this investment. Together, this will leverage in approximately £59.1m of private sector investment. 121.Brentwood and Maldon also make significant contributions to the Essex economy in a number of sectors, notably manufacturing and life sciences. Identified growth plans include the Causeway regeneration programme and significant new homes which require improvements to key routes such as the Heybridge Relief Road. We are leading the development of an 41 Map 3: A12 and Great Eastern Main Line - Heart of Essex Corridor Key Transport SEFUND ID Name ID Name 027 Causeway Regeneration Programme 035 Flood Prevention 028 Maldon Pinch Point Programme 036 Chelmer Waterside 029 A414 Maldon to Chelmsford Route Based Strategy 037 City Centre Public Realm 030 North Chelmsford Package/Beaulieu Park 038 Shenfield Station Improvements 031 Chelmsford City Pinch Point Package - Access to Waterside 039 Brentwood Station Improvements 032 Chelmsford City Pinch Point Package - Ring Loop 051 ARU MedTech Campus Site 033 Heart of Essex Integrated Transport Package 053 A131 Chelmsford to Braintree Route Based Strategy 034 Chelmsford City Integrated Transport Package 42 Table 7: Transport projects within the M11 - London Stansted Cambridge Corridor London Stansted Cambridge Growth Corridor Transport Investment Investment Scheme Location and name Brief description M11 J7a Pinch Point Package: M11 J7a Harlow M11 J7a Pinch Point Package: M11 corridor junction 7 (A414 Harlow) M11 J7a Harlow M11 J8 Pinch Point Package A414 Route Based Strategy, Harlow to Chelmsford A414 Pinch Point Package: Eastwick& Fifth Ave dualling & junc improvements A414 Pinch Point Package: A414 First Avenue & Cambridge Rd junction A414 Pinch Point Package: Edinburgh Way & East Road junc & approach improvements Harlow Integrated Transport Package Harlow Town Centre pinch point package A104 and B1393 Loughton to Epping route based strategy Saffron Walden Integrated Transport Package TOTAL M11 corridor junction 7 (A414 Harlow) Improvements to local road links to junction 8 Jobs Created Homes created 12 4293 6807 9 2295 2805 2295 2805 1440 525 1440 525 Full cost (£m) SLGF Local authority Private 47 30 5 10 1 1 1 Other Highway asset renewal, traffic management, congestion relief, cycling, safety & public transport measures A414 Improvements Eastwick and Fifth Ave dualling and junction improvements 8 4 20 5 A414/First Avenue & A414/Cambridge Road Junction Improvements 5 5 1440 525 5.9 5.9 1440 525 12 5 825 900 5 5 825 900 8 4 4 499 1500 2 1 1 450 1250 123.9 66.9 21 17,242 19,067 A414 Edinburgh Way/East Road Junction and approach Improvements Harlow Integrated Transport Measures to aid accessibility by mix of modes A1025 2nd Avenue / Velizy Avenue Junction Improvement Highway asset renewal, traffic management, congestion relief, cycling, safety & public transport measures Saffron Walden Integrated transport package 4 15 7 36 48 Table 8: Transport projects within the M11 London Stansted Cambridge Corridor London Stansted Cambridge Corridor SEFUND Investments Investment Scheme Location and name Harlow EZ London Road Enabling and Delivery North Weald Airfield Templeflieds Development Package & Civic Amenity Medtech Campus - Harlow Brief description This project will deliver a range of site acquisitions, up front development work and enabling infrastructure that will support the development of the EZ and substantially de-risk the site for potential investors/occupiers. Development of homes and the creation of an avionics hub for the south east of England. Project to test the viability of creating a Business Improvement District through a package of improvements to help leverage in investment in the area. Development of the wider Medtech campus and the innovation centre, providing business support as well as development of incubator space. TOTAL Other Jobs Created Homes Created 9.8 11.2 264 210 9 5 4 198 600 8 4 4 264 210 1 324 210 15.2 1,050 1,230 Other Jobs Created Homes Created 18,292 20,297 Full cost (£m) SLGF 21 2 40 19.8 Local authority Private 5 Table 9: Skills projects within the M11 London Stansted Cambridge Corridor London Stansted Cambridge Corridor Skills Investments Investment Scheme Location and name Brief description Harlow Manufacturing & Engineering Centre Feasibility work is currently underway that will examine the viability of a Group Training Association based on the AM sector, to be located within the EZ. TOTAL OVERALL TOTAL Full cost (£m) SLGF Local authority 6 3 3 6 3 3 169.9 89.7 26 Private 36 18.2 49 Table 4: Transport projects within the A12 and Great Eastern Main Line Heart of Essex Corridor Heart of Essex Growth Corridor Transport Investment Investment Jobs created Homes created 885 780 885 780 885 780 10 513 510 7 7 390 416 New rail station at north of Chelmsford – Beaulieu Park 34 12 4020 4002 A131 Chelmsford to Braintree Route Based Strategy Highway asset renewal, traffic management, congestion relief, cycling, safety & public transport measures 8 4 4 1066 1000 A414 Maldon to Chelmsford Route Based Strategy Highway asset renewal, traffic management, congestion relief, cycling, safety & public transport measures 4 2 2 1066 1300 Maldon Pinch Point Programme Heybridge Relief Rd 40 10 1066 2700 Shenfield station improvements 3.5 1.5 2700 0 2 2 2700 1800 140 68 16,176 14,068 Scheme location and name Brief description Full cost (£m) SLGF 7.5 3 12 5 12 11.5 Access to Waterside (inc EGAR) 10 Widford Park and Ride GEML capacity improvements Chelmsford City Integrated Transport Package Heart of Essex Integrated Transport Package Chelmsford City Centre Pinch Point Package: Chelmsford City Centre Pinch Point Package: Chelmsford City Integrated Transport Package Shenfield station improvements Brentwood station improvements TOTAL Chelmsford Station / station square / Mill Yard Chelmsford Integrated Transport Package inc radial PT routes Chelmsford Traffic and Access Strategy (Ring and Loop) (inc Army and Navy) Brentwood station improvements Local authority Private Other 1.3 3.2 7 0.5 22 30 2 13 53.8 5.2 43 Table 5: SEFUND projects within the A12 and Great Eastern mainline Heart of Essex Corridor Heart of Essex Growth Corridor SEFUND Investments Scheme Location, Name and Detail Flood Prevention Chelmer Waterside City Centre public realm ARU MedTech Campus site Causeway Regeneration Programme Brief description Strategic infrastructure priority to protect residential and commercial properties from flooding along with key development in the city centre A key strategic site in the city centre that has potential to deliver in the new homes and commercial development. The public realm programme embraces the central area of Chelmsford including the shopping area, transport interchange, park entrances, rivers and key entrances into the city centre. It will support increased investment in the city, particularly in the retail sector. This project is aimed at positioning Essex as a leading location for the development of the medical technology sector through a package of tailored business support and the development of three MedTech Business Parks in Chelmsford, Harlow and Southend. Masterplan for redevelopment of industrial area and links to the market town and Heybridge. TOTAL Investment Local Private authority Other Jobs Created Homes Created 6.5 4.5 156 312 1.3 6 204 510 2.3 456 312 3 1998 312 114 0 2,928 1,446 Jobs Created Homes Created 19,104 15,514 Full cost (£m) SLGF 13 2 10 2.7 5.5 3.2 8 3 2 1.1 0.1 1 37.6 11.0 10.8 5.3 10.5 Private Other Table 6: Skills projects within the A12 and Great Eastern mainline Heart of Essex Corridor Heart of Essex Growth Corridor Skills Investments Investment Scheme Location and name Brief description STEM & Enterprise Training Centre STEM & Enterprise Training Centre, Maldon OVERALL TOTAL Full cost (£m) 1.45 SLGF Local authority 1.1 0.35 0.05 1.45 1.1 0.35 0.05 179.05 80.1 59.45 15.75 23.8 44 Growth Corridors: London-Stansted-Cambridge Corridor/ West Essex (M11) 125. The west of Essex is part of the London-Stansted-Cambridge Corridor (LSCC), connecting London, Stansted and Cambridge, via the M11 and the West Anglia Main Line (WAML). The Corridor has enormous growth potential, particularly in Harlow, building on the local strengths in life sciences and other high value sectors. In Stansted Airport, the LSCC has a key economic asset with significant potential to catalyse growth across the corridor and beyond. The airport is an important component of the Essex economy and a major employment hub, currently employing 10,900 workers, over half (59%) of whom live in Essex. Stansted Airport is a major freight transport asset, the fourth busiest in the UK by passenger numbers, and has significant growth potential with capacity to handle up to 45 million passengers per annum. 126. The delivery of the Harlow Enterprise Zone (EZ) is underway with the refurbishment of the Nortel complex. The EZ will attract companies in life sciences, advanced manufacturing and information and communications technologies (ICT) and has capacity for over 5,000 jobs. The EZ will also be the home of one of Anglia Ruskin’s new Med Tech campuses. The advanced manufacturing sector in Harlow will be supported by development of the Harlow Manufacturing and Engineering Centre providing state of the art facilities to meet the skills requirements of existing businesses and those investing in the corridor. 127. In addition to the EZ there are many other opportunities for growth in West Essex. This includes future housing developments in Uttlesford, and developing projects such as work focused on Lea Valley to support innovation in food production and technology which will secure the future for the industry and increase market share of specialist foods supply to the capital. 128. Its close proximity to London has a powerful impact on the whole of West Essex in relation to the economy, housing and connectivity. This poses both challenges and opportunities for the area. Epping Forest is served by the London Underground Central Line, supporting not only commuters but business, cultural and educational relationships. More widely, four tracking of the West Anglia Mainline (WAML) along with potential benefits of Crossrail 2 will further improve rail connectivity in the area. 129. Several key transport investments are required to unlock full growth potential. In particular, M11 Junction 7a is vital if the EZ is to reach its full capacity and to enable significant housing growth at Harlow. Investments in the A414 to address existing bottlenecks are also essential. Plans for Growth 130. We have identified investment opportunities in the West Essex Growth Corridor, along with key transport infrastructure improvements, that will help to realise the economic potential 45 Table 10: Transport projects within the A13/A127 – TGSE Growth Corridor TGSE Growth Corridor Transport Investment Investment Scheme Location and name Brief description Basildon Integrated Transport Package Access to Canvey and A129 Woodmans junction A120 Pinch point - Improved access to Canvey A127 Corridor Full cost (£m) SLGF Local authority Basildon Integrated Transport Package 7.5 4 3.5 Basildon Integrated Transport Package 5.5 5 0.5 6 5 1 A129 Castle Point route based strategy 2.5 2 0.5 A127 Pinch point 17 15 2 5 3 2 2 1 1 4.8 4.4 0.4 A127 Route Management Strategy A127 Route Management Strategy Rochford Pinch point package Southend Airport JAAP Local Sustainable Transport Funding Rochford Pinch point package - Southend Airport JAAP Rochford Pinch point package - Southend Airport JAAP 2.2 1.6 Local Sustainable Transport Funding to provide an efficient and recognised bus and train network 3 3 55.5 44 TOTAL Private Other Jobs Created (directly) Homes created (directly) 1192 2246 950 180 3384 9018 2688 468 8,214 11,912 0.6 11.5 Table 11: SEFUND projects within the A13/A127 – TGSE Growth Corridor 53 TGSE Growth Corridor SEFUND Investments Scheme Location, Name and Detail Canvey Basildon Town Centre Craylands and Fryerns Investment Brief description Development of a Business and Enterprise Park and development of the Knightswick Centre and surrounding land. Redevelopment of town centre and railway station including the relocation of South Essex College’s Basildon campus Last phase of the transformation of the most deprived housing estate in South East Essex TOTAL Homes Created SLGF Local authority Private 90 4.5 2 83.5 475 90 120 5.5 114.5 596 1,123 32.8 6 26.8 289 128 242.8 16 248.8 1360 1341 Jobs Created Homes Created 9574 13253 2 Other Jobs Created Full cost (£m) Table 12: Skills projects within the A13/A127 – TGSE Growth Corridor TGSE Growth Corridor Skills Investments Investment Scheme Location and name Brief description Bio and environmental tech centre, Basildon Bio and environmental tech centre, Basildon OVERALL TOTAL Full cost (£m) SLGF Local authority 32 6 26 32 6 26 330.3 66 13.5 Private 224.8 Other 26 54 The complementary programme of investment being led by partners in Southend and Thurrock is summarised below. Table 13: Transport projects within the A13/A127 – TGSE Growth Corridor to be delivered through complementary investment programmes in Southend-on-Sea and Thurrock TGSE Growth Corridor Transport Investment Investment Scheme Location and name Brief description Southend and Rochford Growth Area JAAP Southend and Rochford Growth Area JAAP Southend and Rochford Growth Area SCAAP Southend and Rochford Growth Area SCAAP 7.0 7.0 A127 Corridor A127 Corridor 18.0 16.6 1.4 London Gateway/ Stanford-leHope London Gateway/ Stanford-le-Hope 12.1 7.5 0.9 Grays Town Centre Grays Town Centre 21.54 16.40 0.14 Thurrock Integrated Transport Package Thurrock Integrated Transport Package 6.2 2.0 Thurrock Cycling Network Improvements Thurrock Cycling Network Improvements 6.1 5.0 1.1 Thurrock Lakeside Thurrock Lakeside 22.4 13.0 0.4 Thurrock Rail Package Thurrock Rail Package 24.0 12.0 12.0 Full cost (£m) SLGF Local authority 13.7 11.7 2.0 Jobs Created (directly) Homes created (directly) 7380* 1768* 34104* 28391* 3.7 4400 700 5.0 2000 2607 0 0 0 0 1000 1100 16580 4200 Private Other 4.2 9.0 TOTAL 131.0 91.1 18.0 17.7 4.2 65,464 38,766 *Note: where schemes appear within both the Essex and TGSE plan, a proportion of these figures are also reflected within the Essex investment tables above (table 10). 55 Table 14: SEFUND projects within the A13/A127 – TGSE Growth Corridor to be delivered through complementary investment programmes in Southend-on-Sea and Thurrock TGSE Growth Corridor SEFUND Investments Investment Scheme Location, Name and Detail Brief description Southend and Rochford JAAP Southend and Rochford JAAP 251.5 Southend and Rochford SCAAP Southend and Rochford SCAAP Thames Enterprise Centre Private investors 8.8 30.0 201.3 3690 0 57.9 6.8 8.7 40.0 4200 200 Thames Enterprise Centre 583.5 3.5 580.0 520 0 Purfleet Purfleet 687.5 7.5 80.0 600.0 1500 2500 Tilbury Tilbury 176.9 34.4 350 Grays Town Centre 4.5 4.3 1100 Grays Town Centre 181.4 68.7 30.0 450 400 11,460 3,450 1,830.4 SLGF 35.3 330.0 1,451.3 Other Homes Created Local partners TOTAL Full cost (£m) Jobs Created 56 Future development of growth projects 1. The projects detailed in the tables above represent the model developed project proposals within partners’ investment pipeline and those which are best placed to benefit from investment from the SLGF. However, over the life of this plan, partners anticipate the continued development of their infrastructure pipeline. Across Essex’s growth corridors, there are further proposals that could, with further refinement unlock jobs and housing growth. Partners across Essex will work together to develop these projects, and to identify the right investment options to secure their delivery. Table 9: Further opportunities to be developed through partners’ infrastructure pipeline Scheme name Location Horsley Cross (Tendring Europark) - Highways Costs Quayside Expansion Harwich International Port Quayside Strengthening Harwich Innovation and Incubation Centre (Offshore) Care Sector Development Haven Ports - Harwich Haven Approach, Channel Dredging Clacton Sea Front Development Scheme name A120 – Haven Gateway Corridor Location Dengie Gateway Programme Brentwood Package Brentwood Package Brentwood Package Brentwood Package Brentwood Package Scheme name Harlow Town Centre A12 and Great Eastern mainline Heart of Essex Corridor Location M11 London Description The Tendring Europark development site (A120 junction with B1035) is being promoted by Croland Ltd. The scheme (Phase 1) has planning permission for a new 11.2ha industrial park with up to 28,280m of floorspace for B2 and B8 use, a bus depot and a 30m high telecommunications mast. Estimated cost (£m) 20 HPUK need to invest in strengthening and extending its quay to facilitate heavy lift. 5 Support to Offshore Wind Industry. Feasibility study underway this financial year 5 Links with Colchester Institute Potential TEN-T bid, likely to be funded from developer and other sources. Major Infrastructure Project Potential to expand pier offer Description Links to mitigate loss of Bradwell Power Station. There are a number of opportunities to kick start rural innovation working with land owners, farmers, vineyards and building the visitor economy. West Horndon William Hunter Way Baytree Shopping Centre Mountnessing Roundabout Brentwood Enterprise Park/Codham Hall (M25 jct 29) Description Instigation of scheme development to comprehensively sensibly masterplan the 5 TBC 4 Estimated cost (£m) 1.5 TBC TBC TBC TBC TBC Estimated cost (£m) TBC 57 Harlow Housing Delivery (including affordable housing) Harlow Employment Areas & Local Centres Productive Landscapes project ERDF Target Sector Business Innovation Successor Programme Stansted Cambridge Corridor town centre and support with a realistic delivery plan and funding strategy. Work will also include robust analysis of commercial viability. Enabling new affordable housing and replacement/regeneration of existing housing stock that does not meet current standards. Regeneration of local centres at Staple Tye and Stow with the aim of securing improved retail, employment, local services and retail. Glass houses This project will continue the funding for the ERDF funded project that supports the development of Medtech businesses as part of the Medtech Campus offer. The current funding comes to an end in 2015. 2 4 1 58 sectors have been identified in which Essex has, or could have, a strong competitive advantage. Productivity This section provides detail of partners’ proposals to enhance support for enterprise and innovation and to support key growth sectors within Essex. 2. Historically, productivity in the Essex economy has not been as strong as in other areas of the South East England. In general, areas to the west, south west and north of London have much stronger economies than areas to the east of London. Output per head in Essex is estimated at £18,175 per year (2012) significantly below comparable figures for London (£37,232), counties such as Surrey (£28,628), Oxfordshire (£24,895), Hertfordshire (£24,155), and national averages (£21,937). Moreover, overall growth in Essex’s output has lagged behind these comparable areas. Addressing the productivity gap: key sectors 3. The fact that productivity has remained lower in Essex than in other areas of the South East reflects the industrial structure of the Essex economy. Essex’s partners’ ambition therefore, is to achieve significant jobs growth, whilst concentrating resources on supporting higher value-added sectors of the economy (and raising the skills levels within the workforce). Essex partners have therefore adopted a process of smart specialisation – a process through which partners can identify key sectors on which to focus support given local assets and key trends driving shifts in the world economy. Through this process a number of 4. These sectors are priorities because we already have a critical mass of business activity upon which to build and there are strong prospects for growth in the near future which we would expect to lead to the creation of significant high value employment. Our key sectors are as follows: Advanced manufacturing 5. This is a high value sector, identified as a pillar of future UK growth. The advanced manufacturing sector in Essex consists of an estimated 960 companies with a combined GVA of £1.7bn, and employs 21,900 people. This is equivalent to 1.6% of the jobs in Essex. The sector accounts for 6.7% of total Essex GVA, a much higher proportion than the equivalent sectoral contribution in SELEP and England. Particular advanced manufacturing strengths are machinery, ICT and motor vehicles, with these sectors accounting for nearly 60% of the advanced manufacturing firms in Essex. 6. Harlow’s Enterprise Zone will support the growth of high-tech and medical technology companies and we are exploring the potential for developing an Advanced Manufacturing Centre of Excellence in Harlow. Success will be dependent upon investing in suitable supporting infrastructure and commercial space, and upon promoting investment in innovation. 59 TGSE Growth Corridor SEFUND Investments Scheme Location, Name and Detail Canvey Basildon Town Centre Craylands and Fryerns Investment Brief description Development of a Business and Enterprise Park and development of the Knightswick Centre and surrounding land. Redevelopment of town centre and railway station including the relocation of South Essex College’s Basildon campus Last phase of the transformation of the most deprived housing estate in South East Essex TOTAL Homes Created SLGF Local authority Private 90 4.5 2 83.5 475 90 120 5.5 114.5 596 1,123 32.8 6 26.8 289 128 242.8 16 248.8 1360 1341 Jobs Created Homes Created 9574 13253 2 Other Jobs Created Full cost (£m) Table 12: Skills projects within the A13/A127 – TGSE Growth Corridor TGSE Growth Corridor Skills Investments Investment Scheme Location and name Brief description Bio and environmental tech centre, Basildon Bio and environmental tech centre, Basildon OVERALL TOTAL Full cost (£m) SLGF Local authority 32 6 26 32 6 26 330.3 66 13.5 Private 224.8 Other 26 54 The complementary programme of investment being led by partners in Southend and Thurrock is summarised below. Table 13: Transport projects within the A13/A127 – TGSE Growth Corridor to be delivered through complementary investment programmes in Southend-on-Sea and Thurrock TGSE Growth Corridor Transport Investment Investment Scheme Location and name Brief description Southend and Rochford Growth Area JAAP Southend and Rochford Growth Area JAAP Southend and Rochford Growth Area SCAAP Southend and Rochford Growth Area SCAAP 7.0 7.0 A127 Corridor A127 Corridor 18.0 16.6 1.4 London Gateway/ Stanford-leHope London Gateway/ Stanford-le-Hope 12.1 7.5 0.9 Grays Town Centre Grays Town Centre 21.54 16.40 0.14 Thurrock Integrated Transport Package Thurrock Integrated Transport Package 6.2 2.0 Thurrock Cycling Network Improvements Thurrock Cycling Network Improvements 6.1 5.0 1.1 Thurrock Lakeside Thurrock Lakeside 22.4 13.0 0.4 Thurrock Rail Package Thurrock Rail Package 24.0 12.0 12.0 Full cost (£m) SLGF Local authority 13.7 11.7 2.0 Jobs Created (directly) Homes created (directly) 7380* 1768* 34104* 28391* 3.7 4400 700 5.0 2000 2607 0 0 0 0 1000 1100 16580 4200 Private Other 4.2 9.0 TOTAL 131.0 91.1 18.0 17.7 4.2 65,464 38,766 *Note: where schemes appear within both the Essex and TGSE plan, a proportion of these figures are also reflected within the Essex investment tables above (table 10). 55 Table 14: SEFUND projects within the A13/A127 – TGSE Growth Corridor to be delivered through complementary investment programmes in Southend-on-Sea and Thurrock TGSE Growth Corridor SEFUND Investments Investment Scheme Location, Name and Detail Brief description Southend and Rochford JAAP Southend and Rochford JAAP 251.5 Southend and Rochford SCAAP Southend and Rochford SCAAP Thames Enterprise Centre Private investors 8.8 30.0 201.3 3690 0 57.9 6.8 8.7 40.0 4200 200 Thames Enterprise Centre 583.5 3.5 580.0 520 0 Purfleet Purfleet 687.5 7.5 80.0 600.0 1500 2500 Tilbury Tilbury 176.9 34.4 350 Grays Town Centre 4.5 4.3 1100 Grays Town Centre 181.4 68.7 30.0 450 400 11,460 3,450 1,830.4 SLGF 35.3 330.0 1,451.3 Other Homes Created Local partners TOTAL Full cost (£m) Jobs Created 56 Future development of growth projects 1. The projects detailed in the tables above represent the model developed project proposals within partners’ investment pipeline and those which are best placed to benefit from investment from the SLGF. However, over the life of this plan, partners anticipate the continued development of their infrastructure pipeline. Across Essex’s growth corridors, there are further proposals that could, with further refinement unlock jobs and housing growth. Partners across Essex will work together to develop these projects, and to identify the right investment options to secure their delivery. Table 9: Further opportunities to be developed through partners’ infrastructure pipeline Scheme name Location Horsley Cross (Tendring Europark) - Highways Costs Quayside Expansion Harwich International Port Quayside Strengthening Harwich Innovation and Incubation Centre (Offshore) Care Sector Development Haven Ports - Harwich Haven Approach, Channel Dredging Clacton Sea Front Development Scheme name A120 – Haven Gateway Corridor Location Dengie Gateway Programme Brentwood Package Brentwood Package Brentwood Package Brentwood Package Brentwood Package Scheme name Harlow Town Centre A12 and Great Eastern mainline Heart of Essex Corridor Location M11 London Description The Tendring Europark development site (A120 junction with B1035) is being promoted by Croland Ltd. The scheme (Phase 1) has planning permission for a new 11.2ha industrial park with up to 28,280m of floorspace for B2 and B8 use, a bus depot and a 30m high telecommunications mast. Estimated cost (£m) 20 HPUK need to invest in strengthening and extending its quay to facilitate heavy lift. 5 Support to Offshore Wind Industry. Feasibility study underway this financial year 5 Links with Colchester Institute Potential TEN-T bid, likely to be funded from developer and other sources. Major Infrastructure Project Potential to expand pier offer Description Links to mitigate loss of Bradwell Power Station. There are a number of opportunities to kick start rural innovation working with land owners, farmers, vineyards and building the visitor economy. West Horndon William Hunter Way Baytree Shopping Centre Mountnessing Roundabout Brentwood Enterprise Park/Codham Hall (M25 jct 29) Description Instigation of scheme development to comprehensively sensibly masterplan the 5 TBC 4 Estimated cost (£m) 1.5 TBC TBC TBC TBC TBC Estimated cost (£m) TBC 57 Harlow Housing Delivery (including affordable housing) Harlow Employment Areas & Local Centres Productive Landscapes project ERDF Target Sector Business Innovation Successor Programme Stansted Cambridge Corridor town centre and support with a realistic delivery plan and funding strategy. Work will also include robust analysis of commercial viability. Enabling new affordable housing and replacement/regeneration of existing housing stock that does not meet current standards. Regeneration of local centres at Staple Tye and Stow with the aim of securing improved retail, employment, local services and retail. Glass houses This project will continue the funding for the ERDF funded project that supports the development of Medtech businesses as part of the Medtech Campus offer. The current funding comes to an end in 2015. 2 4 1 58 sectors have been identified in which Essex has, or could have, a strong competitive advantage. Productivity This section provides detail of partners’ proposals to enhance support for enterprise and innovation and to support key growth sectors within Essex. 2. Historically, productivity in the Essex economy has not been as strong as in other areas of the South East England. In general, areas to the west, south west and north of London have much stronger economies than areas to the east of London. Output per head in Essex is estimated at £18,175 per year (2012) significantly below comparable figures for London (£37,232), counties such as Surrey (£28,628), Oxfordshire (£24,895), Hertfordshire (£24,155), and national averages (£21,937). Moreover, overall growth in Essex’s output has lagged behind these comparable areas. Addressing the productivity gap: key sectors 3. The fact that productivity has remained lower in Essex than in other areas of the South East reflects the industrial structure of the Essex economy. Essex’s partners’ ambition therefore, is to achieve significant jobs growth, whilst concentrating resources on supporting higher value-added sectors of the economy (and raising the skills levels within the workforce). Essex partners have therefore adopted a process of smart specialisation – a process through which partners can identify key sectors on which to focus support given local assets and key trends driving shifts in the world economy. Through this process a number of 4. These sectors are priorities because we already have a critical mass of business activity upon which to build and there are strong prospects for growth in the near future which we would expect to lead to the creation of significant high value employment. Our key sectors are as follows: Advanced manufacturing 5. This is a high value sector, identified as a pillar of future UK growth. The advanced manufacturing sector in Essex consists of an estimated 960 companies with a combined GVA of £1.7bn, and employs 21,900 people. This is equivalent to 1.6% of the jobs in Essex. The sector accounts for 6.7% of total Essex GVA, a much higher proportion than the equivalent sectoral contribution in SELEP and England. Particular advanced manufacturing strengths are machinery, ICT and motor vehicles, with these sectors accounting for nearly 60% of the advanced manufacturing firms in Essex. 6. Harlow’s Enterprise Zone will support the growth of high-tech and medical technology companies and we are exploring the potential for developing an Advanced Manufacturing Centre of Excellence in Harlow. Success will be dependent upon investing in suitable supporting infrastructure and commercial space, and upon promoting investment in innovation. 59 Our Commitment to Delivery Development of proposals for economic growth and the advancement of business interests for submission to SELEP; This section outlines the local partnerships and governance arrangements that will ensure effective local delivery, accountability in local decision-making and provide assurance on partners’ stewardship of taxpayers’ money. 45. Our shared ambitions for growth are fully reflected in our commitment to delivery and the governance arrangements that underpin it. We will build on our existing robust sub-regional partnership base (Haven Gateway Partnership, West Essex Alliance, Heart of Essex and Thames Gateway South Essex) to advance investments into our economic growth corridors. We will work closely with public and private sector partners throughout Essex to ensure our investments complement one another and maximise private sector leverage. 46. Essex County Council, working closely with local partners, will act as the primary commissioning body for the funding devolved to Essex by HM Government via SELEP. Essex County Council will, as a voting member of the Thames Gateway South Essex Partnership, also work closely with partners in TGSE, ensuring alignment wherever possible. 47. Ensuring close alignment to the requirements of Essex businesses, the Greater Essex Business Board (GEBB) has become established and will perform the following functions: Coordination of the responses of Essex, Southend and Thurrock businesses to proposals and initiatives; Advocate and promote the interests of the area by working with local authorities; and Work collaboratively to advance the collective interests of Essex, Southend and Thurrock. 48. GEBB’s primary role in the governance structure is one of project co-design and to ensure private sector endorsement for those decisions which are taken by local authorities for the advancement of projects underpinning growth. The Board is fully representative of the four sub-regions of Essex, of the universities and of the three main business membership organisations. 49. It is with this strength that it meets at least quarterly in advance of each SELEP board meeting to form a robust Essex business view on the agenda. This arrangement is complemented by a meeting of the five GEBB representatives on the SELEP board with the five Essex, Southend and Thurrock local authority representatives, scheduled to take place ahead of each LEP meeting. This public-private partnership meeting will provide important challenge where necessary to ensure that Greater Essex presents the strongest possible complement of investment opportunities to the LEP. 66 50. 51. It is our expectation that Essex County Council, capitalising on its role as Accountable Body for the whole of SELEP, will be the administrator of devolved funding from SELEP. The governance arrangements depicted as building blocks in Figure 1 overleaf are simplified for the sake of clarity. While it is clear that lower-level geography specific or sector specific boards or groupings are in place to advance the agenda, what is illustrated here are the arrangements which have a clear line of sight to the SELEP. Most are well established, though some arrangements are in their infancy. New or proposed Boards, such as the Local Innovation Board, are illustrated with a dotted line. immediate term will be identifying the appropriate forum if partners consider that it does not exist already. Project management Key group: Individual project sponsors Each Delivery Plan will stipulate the stakeholders involved in the delivery of projects and it will be expected that cross organisational groupings will convene (potentially commissioned by Essex County Council) to advance projects. Oversight should be provided by the Economic Plan Delivery Group (current ICS working group). 52. It will be important to ensure that projects are advanced and approvals are achieved through individual governance arrangements within, for example, universities; district, borough and city councils; and other funding partners. This will include district-level business groupings and local level working groups which support our focus on growth corridors. 53. We will develop a delivery plan or plans to support our objectives and ensure that LGF and European funding is able to unlock growth as planned. Interventions will be clear, focused and integrated and will engage wider stakeholders in their delivery. We aim to have a final version of our delivery plan(s) in place by November 2014 (see timetable below). 54. To support delivery of investment, Essex partners plan to invest in creating a major infrastructure delivery unit to bring together capacity across a range of public services, underpinned by a single infrastructure plan for Essex. This will be supported by the development of an Essex Planning Compact – a series of collective commitments to deliver planning decisions faster and Decision-making requirements will generally fall into three categories, as set out below: Strategic: Key group: ECEA & Leaders; Greater Essex Business Board; Local authorities All local authorities will use existing partnership arrangements to ensure that the right decisions are taken. For example, in the case of transport in Essex, Highways Panels and local delivery partnerships will be involved in the decision-making process which will ultimately be the role of Essex County Council. Allocative: Key group: Economic Plan Delivery Group (supported by businesses and HE/FE reps) Projects which come forward for funding, and for consideration at either the Economic Plan Delivery Group or ECEA will all be independently and consistently appraised according to the value for money and appraisal guidance issued by the LEP. This will allow for fair comparative judgements at the requisite forum. A key task in the 67 7. There are established clusters of advanced manufacturing businesses in Basildon, Chelmsford, Harlow and Brentwood, with leading names such as Ford and Raytheon Ltd, e2v, Visteon Engineering and Selex ES. Low carbon & renewables 8. 9. 10. This is a significant sector across Essex and for the UK, with a growing demand for low carbon and environmental goods and services to meet the UK’s carbon reduction target of 80% by 2050. Based on research commissioned by the BIS in 2010, these sectors already account for almost £3bn in business turnover per annum, across 1,348 companies, and employing almost 20,000 people in Essex. At the heart of Essex's offer to low carbon sectors is access to a number of strong and established related (and potentially related) sectors. These include ICT and advanced electronics, financial and business services, construction, creative industries, ports and logistics, low carbon and environmental goods and services. Essex is home to a competitive renewable energy sector, with Harwich International Port already at the leading edge of servicing offshore wind farm delivery, as well as significant activity in Maldon, including potential for a new nuclear power plant at Bradwell. Looking to the future, expansion at Bathside Bay (adjacent to Harwich International Port) could further increase Essex’s opportunities in this area. 11. Significantly, precision engineering, aerospace and the automotive sector based around Basildon are likely to be key complementary sectors that could contribute directly to the offshore energy supply chain. 12. Key locations are the whole of the east coast of Essex, with particular centres of excellence at Ford Dunton (green automotive technologies), Harwich (offshore wind) and Writtle College (land based sciences). Logistics 13. The logistics sector in Essex accounts for approximately 1,800 firms, employing 17,800 people with an annual GVA of around £1.2bn. Businesses in the sector were more likely than other sectors to have plans to enter new product/service areas/markets and to expand, and more likely to have made capital investment in their Essex sites over the past 12 months. 14. The sector is heavily dependent upon Essex’s seaport and airport strengths, and access to South East markets and Europe. Just outside our area, Thurrock is the site of the largest combined deep sea container port and logistics park project in Europe (DP World/London Gateway) and the district of Uttlesford is home to the UK’s third largest airport for freight and fourth largest for passenger travel (Stansted). 15. A real strength of the logistics sector in Essex arises from innovative firms that are based in the sector, which contributes to the wider health of the Essex economy. 60 16. Key locations for logistics activity are Thurrock, Southend, Stansted and Harwich. Ports and logistics account for more than 1 in 10 jobs in Thurrock and Uttlesford. Digital, cultural & creative 20. Digital, cultural & creative refers to firms that are involved in all aspects of the creative economy, including: software development and publishing, cultural activities, design, the arts, music, film, television and radio. There are 2,400 firms in the sector, employing 10,875 people and generating £1bn in GVA per annum. 21. We have high expectations for growth in Essex across this sector. We already have a number of significant assets, including METAL and Firstsite in Colchester. With a number of Essex locations within an hour’s travel of London’s Tech City there is potential for Essex to accommodate some of the growing demand for firms looking outside the cluster for start-up or grow-on space. New developments like the Creative Business Centre in Colchester will provide the infrastructure necessary to attract and retain some of these firms, as well as help more local businesses in the sector to start-up and grow. 22. The University of Essex Knowledge Gateway will be home to leading-edge expertise in ‘Big Data’, which will have a significant impact on this sector. 23. There are clusters of sectoral activity at Chelmsford, Colchester and Southend. The legacy of Nortel in West Essex means that there is a skilled workforce of technicians in the area able to support the technical demands of the sector. Life sciences & healthcare 17. 18. 19. Life sciences & healthcare refers to a series of sectors centred around providing new drugs and healthcare technologies, and providing essential healthcare services to the general population and older people. The three main sub-sectors are life sciences, Med Tech and care services. In total, there are just over 1,000 firms in these sectors in Essex employing 37,400 people with an annual GVA of £797m. Essex has specific strengths in scientific research and development, and manufacture of medical and dental equipment, pharmaceutical and optical products. In Med Tech alone there is a significant, and growing, UK and global market, which Essex is well placed to support. We are working in partnership with Anglia Ruskin University to establish three Med Tech campuses at Chelmsford, Harlow and Southend. Essex also has localised strengths in the care sector. Tendring District Council is working to establish the district as a genuinely innovative ‘trailblazer’ for the UK, focussing support on higher value activities within the sector and making the area an exemplar for research, innovation and growth. There are clusters of Life Science companies in Harlow, Southend, Uttlesford (benefiting from proximity to Cambridge) and Brentwood. Other key locations are Chelmsford and Tendring. 61 The University of Essex Knowledge Gateway in Colchester. Development of the University of Essex Knowledge Gateway will deliver a world class innovation centre that will support the incubation of businesses linked to the university’s strengths in data analytics and data science. The University has already invested £9m in infrastructure to service the Knowledge Gateway in order to create developable plots and is investing a further £21m in a new building to house its business school. This will house the Centre for Enterprise and Growth (CREG). The University has recently secured £4m from the Economic and Social Research Council to further enhance its UK Data Archive as a national resource and is now bidding for a further £7m to add a new Centre for Local Government and Business Data. This will create a world class asset to support the Big Data sector. innovation support programmes and work on knowledge transfer networks. Addressing the productivity gap: support for business 31. Partners also recognise that, if Essex is to sustain growth, then our businesses will need to compete with firms from across the globe. Partners in Essex are committed to ensuring that businesses have access to the right support when they need this. While support for businesses in our priority sectors may deliver a greater economic return in the longer term, businesses in all sectors can benefit from support when they are looking to startup, innovate, grow and explore new markets. 32. We are already providing a large amount of support to Essex businesses. Over the last three years our projects and programmes have: created 4,425 jobs; supported 193 start-ups; The Anglia Ruskin Med-Tech Campuses at Chelmsford, Harlow and Southend. Anglia Ruskin University’s Med Tech Campuses will create one of the world’s largest health innovation hubs, attracting international and national companies around the innovative medical technology sector. Investment in the campuses will help to establish Essex, and the UK, as a global leader in this sector and will secure local and national economic growth. The ARU Med Tech Campus will be split over three sites: in Chelmsford, Harlow, and Southend. Partners have already achieved significant progress on this project and have a clear plan in place to scale up and consolidate business services, established 39 Knowledge Transfer Partnerships (KTPs); supported 105 companies to export; and supported 76 firms to invest in or locate in Essex 33. But at present, different providers of business support services typically work on a localised basis. This generates some highly effective local outcomes, but does not benefit from the scale which an Essex-wide perspective could bring. Going forward, partners across Essex - including the County Council, the University of Essex and Anglia Ruskin University - will deliver a 63 more coherent service so that businesses understand where and how to access support. 34. 35. 36. 37. Our proposal, therefore, is to integrate business support provision under a single brand, enhancing provision through economies of scale and providing a single pathway to business support. As we do this, we will recognise that there is a large ecosystem of private firms providing professional expertise and advice to companies already. We will work with these private firms and with business membership groups, such as Essex Chambers of Commerce, the IoD and the FSB, and will only seek to complement, and not to replace, existing provision in Essex. To provide effective strategic oversight and guidance, we will establish a Local Innovation Board (LIB) for Essex. This will be a business-chaired board and will ensure that our projects and programmes deliver the most value for our local companies. This approach will combine existing business support provision under a smaller number of Essex-wide schemes, and allow us to implement these at scale. This will bring economies and improve value for money. It will also enable us to better share information and expertise, both from a provider perspective, and in helping companies to create new links to firms within and outside of Essex. To support this, we will be asking HM Government to commit £5m in revenue funding to support this radical new approach, and to ensure national business support providers (e.g. Growth Accelerator, UKTI) also work to integrate their programmes under this brand and pathway to support. With this integrated approach in place, our work to support enterprises, promote competitiveness and attract inward investment will cover four clear themes. These are: Business Creation: supporting business start-ups and innovative spin-offs to be successful and to position themselves for growth; Business Growth and Innovation: creating an innovation intensive environment within Essex which is conducive to the creation and exploitation of new ideas and helping to build capacity within local firms to access, generate and commercialise new innovations; Promoting International Trade: helping firms to create better links internationally, partnering with firms / institutions in China to facilitate economic growth in Essex; and Attracting Inward Investment: assisting firms to invest and locate their business activity in Essex, and promoting Essex as a business destination for firms across the rest of the UK and abroad. 38. Finally, and to support this integrated approach to business support, partners across Essex propose to invest in the expansion and improvement of our network of business incubation centres. These provide dedicated business support to firms with the aim of helping them to ‘graduate’ to commercial premises elsewhere. Based on the success of Essex’s existing network – including Essex County Council’s own incubation centres in Clacton, Ongar and Basildon; Business centres in 64 Colchester run by COLBEA and the Harlow Enterprise Hub – partners have identified further sites for additional incubation space at: the Ignite Enterprise Centre in Braintree – the Panfield Lane development to the West of Braintree will support further expansion at this centre; are keen to work with Southend to explore the possibility of extending the concept out across Essex, and then into the wider South East LEP area . Our investments and impacts 41. The capital investment that partners propose for developing and enhancing Innovations Centres, Enterprise Zones and Incubation Centres is contained within the Growth Locations tables in section above. 42. To support the ongoing delivery of business support activity between 2014 and 2021, local partners have identified revenue resources totalling some £78m. We are seeking a further £5m from HM Government to support the integration and enhancement of business support programmes. 43. Of the £78m identified, around £20m is expected from local authority partners and Essex’s Higher Education Institutions. A further £27.5m is anticipated as leverage from private investors and a further £26m will be drawn down from the EU and other funding sources. 44. With this programme of financial support in place – including the £5m from HM Government – local partners expect to create and enable 41,700 new jobs in Essex by 2021. a Witham Enterprise Centre – developing a new, selfsustaining Enterprise Centre in Witham would provide 25 enterprise start up units supported by business advice and support and training facilities; and the Creative Business Centre in Colchester – as part of the Colchester Town Growth location project, partners propose the construction of a Creative Business Centre to provide workspace, innovation, networking and presentation areas. 39. 40. Essex partners also support the proposals to develop a network of ‘Growth Hubs’. Growth Hubs are ‘one-stop-shop’ locations, providing businesses with a single portal through which they can access local and national support. Growth Hubs are designed to engage proactively with local businesses to ensure maximum economic impact of the assistance they provide. They also provide access to incubation and innovation facilities alongside a programme of business support. Partners in Southend are piloting a Growth Hub combining business space and integrating business support. Essex partners 65 Our Commitment to Delivery Development of proposals for economic growth and the advancement of business interests for submission to SELEP; This section outlines the local partnerships and governance arrangements that will ensure effective local delivery, accountability in local decision-making and provide assurance on partners’ stewardship of taxpayers’ money. 45. Our shared ambitions for growth are fully reflected in our commitment to delivery and the governance arrangements that underpin it. We will build on our existing robust sub-regional partnership base (Haven Gateway Partnership, West Essex Alliance, Heart of Essex and Thames Gateway South Essex) to advance investments into our economic growth corridors. We will work closely with public and private sector partners throughout Essex to ensure our investments complement one another and maximise private sector leverage. 46. Essex County Council, working closely with local partners, will act as the primary commissioning body for the funding devolved to Essex by HM Government via SELEP. Essex County Council will, as a voting member of the Thames Gateway South Essex Partnership, also work closely with partners in TGSE, ensuring alignment wherever possible. 47. Ensuring close alignment to the requirements of Essex businesses, the Greater Essex Business Board (GEBB) has become established and will perform the following functions: Coordination of the responses of Essex, Southend and Thurrock businesses to proposals and initiatives; Advocate and promote the interests of the area by working with local authorities; and Work collaboratively to advance the collective interests of Essex, Southend and Thurrock. 48. GEBB’s primary role in the governance structure is one of project co-design and to ensure private sector endorsement for those decisions which are taken by local authorities for the advancement of projects underpinning growth. The Board is fully representative of the four sub-regions of Essex, of the universities and of the three main business membership organisations. 49. It is with this strength that it meets at least quarterly in advance of each SELEP board meeting to form a robust Essex business view on the agenda. This arrangement is complemented by a meeting of the five GEBB representatives on the SELEP board with the five Essex, Southend and Thurrock local authority representatives, scheduled to take place ahead of each LEP meeting. This public-private partnership meeting will provide important challenge where necessary to ensure that Greater Essex presents the strongest possible complement of investment opportunities to the LEP. 66 50. 51. It is our expectation that Essex County Council, capitalising on its role as Accountable Body for the whole of SELEP, will be the administrator of devolved funding from SELEP. The governance arrangements depicted as building blocks in Figure 1 overleaf are simplified for the sake of clarity. While it is clear that lower-level geography specific or sector specific boards or groupings are in place to advance the agenda, what is illustrated here are the arrangements which have a clear line of sight to the SELEP. Most are well established, though some arrangements are in their infancy. New or proposed Boards, such as the Local Innovation Board, are illustrated with a dotted line. immediate term will be identifying the appropriate forum if partners consider that it does not exist already. Project management Key group: Individual project sponsors Each Delivery Plan will stipulate the stakeholders involved in the delivery of projects and it will be expected that cross organisational groupings will convene (potentially commissioned by Essex County Council) to advance projects. Oversight should be provided by the Economic Plan Delivery Group (current ICS working group). 52. It will be important to ensure that projects are advanced and approvals are achieved through individual governance arrangements within, for example, universities; district, borough and city councils; and other funding partners. This will include district-level business groupings and local level working groups which support our focus on growth corridors. 53. We will develop a delivery plan or plans to support our objectives and ensure that LGF and European funding is able to unlock growth as planned. Interventions will be clear, focused and integrated and will engage wider stakeholders in their delivery. We aim to have a final version of our delivery plan(s) in place by November 2014 (see timetable below). 54. To support delivery of investment, Essex partners plan to invest in creating a major infrastructure delivery unit to bring together capacity across a range of public services, underpinned by a single infrastructure plan for Essex. This will be supported by the development of an Essex Planning Compact – a series of collective commitments to deliver planning decisions faster and Decision-making requirements will generally fall into three categories, as set out below: Strategic: Key group: ECEA & Leaders; Greater Essex Business Board; Local authorities All local authorities will use existing partnership arrangements to ensure that the right decisions are taken. For example, in the case of transport in Essex, Highways Panels and local delivery partnerships will be involved in the decision-making process which will ultimately be the role of Essex County Council. Allocative: Key group: Economic Plan Delivery Group (supported by businesses and HE/FE reps) Projects which come forward for funding, and for consideration at either the Economic Plan Delivery Group or ECEA will all be independently and consistently appraised according to the value for money and appraisal guidance issued by the LEP. This will allow for fair comparative judgements at the requisite forum. A key task in the 67
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